Journal Entry for Purchase of Fixed Asset

Journal Entry for Purchase of Fixed Asset

In this article we would explain the journal entry for purchase of fixed asset. The journal would be recorded by debiting the fixed asset being increase in fixed and crediting the cash or creditor account (as case may be). The journal entry is shown below

Date	Particular	Ledger Folio	Dr.	Cr.
03-03-2012	Fixed asset		xxx
03-03-2012	Cash/Creditor			xxx

Journal Entry for Purchase of Fixed Asset on Credit

Journal entry for purchase of fixed on credit shall be recorded by debiting the fixed asset and crediting the individual (creditor) account. For example a machinery amounting 20,000 was purchased from Fareeha shall be recorded as under

Date	Particular	Ledger Folio	Dr.	Cr.
06-06-2013	Machinery		20,000
06-06-2013	Fareeha			20,000

Journal Entry for Purchase of Fixed Asset on Cash

Journal entry for purchase of fixed asset on cash shall be recorded by debiting the fixed asset and crediting the cash. For example furniture amounting 45,000/- purchase on cash from Mr. Raheel shall be recorded as under

Date	Particular	Ledger Folio	Dr.	Cr.
03-05-2010	Machinery		45,000
03-05-2010	Fareeha			45,000