51 – Company Vehicle Expense

Operating Expenses

Synopsis

Account 51

Remarks:

Typical vehicles included in this account would be parts & service trucks, tow trucks, courtesy cars, loaners, general purpose vehicles, and driver education vehicles (dealer owned).

This account should include the operation and maintenance expense of "Executive Cars," "Courtesy Cars," "Loaners," and any expense allowance to retailer personnel for the use of their personal cars in the business.

Charges to this account should include such items as: gas and oil; repairs; washing; maintenance; physical damage losses resulting from accidents (uninsured portion); polishing, license and title fees; sales and use taxes; finance charges; and safety inspections.   Depreciation expense should be charged to Account 355 – Company Vehicles – Accumulated Depreciation.  Insurance should be charged to Account 88 – Insurance Other.  Courtesy cars and loaners exclude vehicles which are primarily revenue producing.  However, if a customer is occasionally charged a nominal amount, with no contractual obligations, this should not be construed as primarily revenue producing.

Expenses should be distributed to the respective operating department.

Note: