A second hand car is purchased for Rs. 1, 00, 000, the amount of Rs. 10, 000 is spent on its repair, Rs. 5, 000 is incurred to get the car registered in owner's name and Rs. 10, 200 is paid as dealer's commission. The amount debited to car account will be

All expenditures incurred to bring an asset to its working condition should be capitalized to the asset account. This includes purchase price (Rs. 1,00,000) + repair costs (Rs. 10,000) + registration expenses (Rs. 5,000) + dealer's commission (Rs. 10,200) = Rs. 1,25,200. All these are necessary to make the car usable and therefore form part of the car's cost.