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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 .

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The jouranl entry of purchage of fixed assets are assents a/c dr. to cash/bank account why we not ..

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

The jouranl entry of purchage of fixed assets are assents a/c dr. to cash/bank account why we not ..

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

The jouranl entry of purchage of fixed assets are assents a/c dr. to cash/bank account why we not ..

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

The jouranl entry of purchage of fixed assets are assents a/c dr. to cash/bank account why we not ..

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

The jouranl entry of purchage of fixed assets are assents a/c dr. to cash/bank account why we not ..

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

The jouranl entry of purchage of fixed assets are assents a/c dr. to cash/bank account why we not ..

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

The jouranl entry of purchage of fixed assets are assents a/c dr. to cash/bank account why we not ..

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

The jouranl entry of purchage of fixed assets are assents a/c dr. to cash/bank account why we not ..

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

The jouranl entry of purchage of fixed assets are assents a/c dr. to cash/bank account why we not ..

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

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