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



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

Post New Answer

More Accounting General Interview Questions

What is Deferred Asset..?

2 Answers  


What is marginal costing?

3 Answers   Capital IQ,


Pls tell me the basic rules of accounts for interview in finanace or accounts section

0 Answers   Genpact, IBM,


Financial Management What will your outlook towards maintenance of liquid assets to ensure that the firm has adequate cash in hands to meet its obligation at all times?

1 Answers  


Explain the concept of responsibility accounting

0 Answers  






Tell me what is “deposit in transit”?

0 Answers  


what is cost of captial

3 Answers  


what is surcharge on which purpose is used please explain

1 Answers   Wipro,


What do you mean by share

7 Answers   Thomson Reuters,


What are the differences between contrast bookkeeping and accounting

0 Answers  


What is the ment of Classifying?

1 Answers  


whom can deduct the TDS?

6 Answers  


Categories