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

Journal Entry for Credit Purchase of Fixed Assets.
Ledger Posting

In Fixed Asset Account

Credit Purchase of Fixed Assets - Posting in Fixed Asset Account.

In Sundry Creditor Account

Credit Purchase of Fixed Assets - Posting 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

Journal Entry for Credit Purchase of Fixed Assets.

Ledger Posting

In Delivery VAN Account

Credit purchase of Fixed Asset - Posting in Fixed Asset Ledger Account.

In TATA Motors Account.

Credit purchase of Fixed Asset - Posting in Sundry Creditors Ledger Account.

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