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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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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 |
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