Kalp Accounting Learning Articles

Sometimes, Business units purchase Fixed Assets on Credit basis i.e Fixed Assets are purchased and made payment on later date. Now let's come to know about the Journal Entry and Ledger Posting system for Credit Purchase of Fixed Assets. Ledger Accounts involved in the transaction, Credit Purchase of Fixed Assets : Debit Account is : Fixed Asset Account Credit Account is : Sundry Creditor Account Journal Entry Ledger Posting In Fixed Asset Account In Sundry Creditor Account Example : In the Books of M/s. Laxmi Tyres(Nature of Business - Trading of Tyre and Tubes). Purchased Delivery VAN for ₹2,35,700/- from TATA Motors on dt.21/02/2022 as per Invoice No.52001. In the above example  Debit Ledger is : Delivery VAN Credit Ledger is : TATA Motors Journal Entry Ledger Posting In Delivery VAN Account In TATA Motors Account. << Previous | Next >> Table of Contents   You can Download the PDF file here Related Articles : Types of Account Double Entry System of Book Keeping Jou

Let's know, how to pass Financial Accounting entries for the transaction, when Fixed Assets are purchased in a business by payment through Bank Account(Cheque/NEFT/RTGS/IMPS/UPI etc.). Pass Journal Entry for the above mentioned type of transaction, and then post them into their respective Ledger Accounts. When Fixed Assets are purchased by payment through Bank Account, Fixed Asset Account shows debit effect and Bank Account shows Credit effect. Journal Entry Ledger Posting In Fixed Assets Ledger Account In Bank Account. Example : In the Books of M/s. Laxmi Tyres(Nature of Business - Trading of Tyre and Tubes). Purchased Computer for ₹46,900/- from M/s.Lotus Computer on dt.21/03/2022 as per Cash Memo No.LC/0045 received. Paid vide Cheque No-331020 of HDFC Bank Current Account No-0034. In the above example, Debit Ledger is : Computer Account Credit Ledger is : HDFC CA No-0034 Journal Entry Ledger Posting In Computer Account. In HDFC CA No.0034 << Previous | Next >> Tabl

In this post, now let's know about complete accounting record keeping procedure for Purchase of Fixed Assets (payment made by Cash.) with Journal Entry and Ledger posting. Fixed Asset means the goods(like Land and Building, Plant and Machinery, Furniture and Fixture etc.) which is not a part of Raw Materials in manufacturing unit, Trading goods in Trading Business, Service in Service Business. Related Books of Account for Purchase of Fixed Assets through Cash payment are : Journal Register. Fixed Asset Ledger Account. Cash Book/Cash Account. Accounts involved in this transaction, Debit Account : Fixed Asset Account Credit Account: Cash Account Journal Entry Ledger Posting In Fixed Asset Account In Cash Account Example : In the Books of M/s. Laxmi Tyres(Nature of Business - Trading of Tyre and Tubes). Purchased Furniture and Fixture for ₹35,700/- from M/s.Escort Furniture on dt.17/03/2022 as per Cash Memo No.1948 received. Pass necessary Journal Entry and Post them into their respec