Journal Entry for Building Purchase

Journal Entry for Building Purchase

Journal entry for building purchase shall be recorded by debiting the building being increase in asset and crediting the cash or creditor (as case may be).

Date	Particular	Ledger Folio	Dr.	Cr.
	Building		xxx
	Cash/Creditor			xxx

Journal Entry for Building Purchase on Credit

Journal entry for building purchase on credit shall be recorded by debiting the building and crediting the creditor. For example a building purchased from John at the price of 2,000,000.

Date	Particular	Ledger Folio	Dr.	Cr.
	Building		2,000,000
	John			2,000,000

 

Journal Entry for Building purchase on Cash

Journal entry for building purchased on cash is recorded by debiting the building and crediting the cash. For Example a building purchased from Sagar at price of 1,500,000.

Date	Particular	Ledger Folio	Dr.	Cr.
	Building		1,500,000
	Cash			1,500,000