The jouranl entry of purchage of fixed assets are assents
a/c dr. to cash/bank account why we not make journal entry
for this is purchage a/c dr. to cash/bank .
Answers were Sorted based on User's Feedback
Answer / vijayender
First of all, the nature of two accounts is different.
Fixed asset a/c is a real account whereas Purchase a/c is a
nominal account.
Purchases represent expenses and expenses provide benefit
only in the period in which they are incurred whereas Fixed
assets are the things of possession which provide benefit
for a long period of time. So, the nature of two accounts
is completely different.
Is This Answer Correct ? | 16 Yes | 1 No |
Answer / sunil jadhav
Because the nature of account of fixed assets is real
accounts that why we dont passed such entry
Is This Answer Correct ? | 11 Yes | 3 No |
Answer / libin kulamuttom
because in accounting,the term purchase means purchase of goods & it does not include purchase of fixed asset.
Is This Answer Correct ? | 4 Yes | 0 No |
Answer / pavan kumar
Asset A/C DR (REAL ACCOUNT)-PRINCIPLE- DR WHAT COMES IN
TO Cash/ Vendor CR- PRINCIPE- CR WHAT GOES OUT
Is This Answer Correct ? | 2 Yes | 0 No |
Answer / santosh swain
the account purchase is used for the goods for which the
company is dealing and asset is real account debit what
comes in.
Is This Answer Correct ? | 2 Yes | 0 No |
Answer / santosh swain
In it if we debit to purchase account then their will no
increase in the fixed asset and purchase a/c refers to the
purchase of things/material which the company deals . So we
should not make purchase as the debit account
Is This Answer Correct ? | 1 Yes | 1 No |
Answer / ca sonal
WE DONT ADD PURCHASE OF FIXED ASSET IN PURCHASES ONE REASON
IS BCOZ VAT IS PAID ON PURCHASES OF GOODS MEANT FOR SALE
AND NOT FIXED ASSETS , SO WHEN I DID FINALISATION OF
ACCOUNTS IF THIS ENTRY IS PASSED WE USED TO REVERSE IT ANY
WAY OTHERWISE VAT ACCOUNT WILL B EFFECTED . THIS IS WHAT I
PRACTICALLY DID .
Is This Answer Correct ? | 1 Yes | 1 No |
Answer / santosh n
when we do not know the exact name of the asset then we take
it as a purchase account. if know the exact name of the
asset like machinery, plant, furniture then we mention that
name instead of purchases a/c
Is This Answer Correct ? | 0 Yes | 4 No |
Answer / rutuja
if we are done purchase a/c dr
to cash a/c
this entry will make effect on purchase i.e purchase will
increase & cash bal will decrease hense there will no any
effect on current asset
Is This Answer Correct ? | 3 Yes | 9 No |
what is the difference between 'quotation' and 'proforma invoice'?
What is the due date of Filing PF return? Is it being filed half yearly or annually?
1- what is cash flow and fund flow 2-Defference between TDS and TCS
Journal entry of outstanding wages is Wages a/c dr TO O/s wages a/c In the Above journal entry why outstanding wages has to be credited ? and o/s wages comes under which account, and why (Personal, Real, Nominal)
what is tax invoice and retail invoice
Ramu started business with rs 1000000.give me journal entry. plz explain brefily
How new/innavtive assets are to be treated under IFRS?
what is golden rule of accounting
2 Answers Ahmed Amin Group, TATA,
In which term & condition excise invoice raises & for what excise invoice raise?
what is use of cost center category in tally ? why & when use this ? what is benfit ?
Goods destroyed by fire rs.2000 and insurance company claim rs 1250. This is shown on adjustment,how is it posting on profit and loss account and balance sheet
What Does Hedgelet Mean?