Journal Entry for Purchase of Fixed asset on Credit

Journal Entry for Purchase of Fixed asset on Credit

Journal entry for purchase of fixed on credit shall be recorded by debiting th fixed asset and crediting the creditor individual account. The sample entry is shown below

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Fixed Asset		xxx
01-01-2017	Creditor’s Account			xxx

Examples of Journal Entries for Purchase of Fixed asset on Credit

1.    Machinery amounting 130,000 purchased from Saleem on Credit.

2.    Furniture amounting 180,000 purchased on Credit from Raheem.

3.    Vehicles amounting 50,000 purchased on Credit from Kirn Motors.

Machinery purchased from Saleem on credit shall be recorded by debiting the machinery being increase in fixed asset and  crediting the Saleem account  being increase in liability a shown below.

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Machinery		130,000
01-01-2017	Saleem			130,000

Furniture purchase from Raheem on credit shall be recorded by debiting the furniture account and crediting the Raheem account.

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Furniture A/c		xxx
01-01-2017	Raheem A/c			xxx

Vehicles purchase on credit from Raheem shall be recorded by debited the vehicle account and crediting the Kirn Motor. The Vehicles account was debited being increase in asset, while Kirn motor was credited being increase in liability.

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Vehicles A/c		xxx
01-01-2017	Kirn Motors			xxx