Journal Entry and Ledger Posting for Credit Purchase of Fixed Assets

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.

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Related Articles :

Types of Account

Double Entry System of Book Keeping

Journal 

Ledger 

Trial Balance

Trading and Profit & Loss Account

Balance Sheet

Bank Reconciliation Statement