Fixed assets are also known as tangible assets such as plant & machinery, office equipments, land, buildings, furniture and vehicles etc. Fixed assets are purchased for long term business purpose.
Fixed Asset Purchase Entry
Computers A/c Dr – 1,00,000
CGST A/c – 9,000
SGST A/c – 9,000
To Vendor A/c – 1,18,000
Fixed Asset Purchased with Cash
Office Furniture A/c Dr – 15,000
To Vendor A/c – 15000
Depreciation A/c Dr – 31,670
To Accumulated Depreciation on Computers A/c – 31,670
Profit on Sale of Asset
HDFC Bank A/c Dr – 70,000
Accumulated Depreciation on Computers A/c Dr – 31,670
To Computers A/c – 1,00,000
To Gain on Sale of Asset A/c – 1,670
Loss on Sale of Asset
HDFC Bank A/c Dr – 67,000
Loss on Sale of Asset A/c Dr – 1,330
What is Bookkeeping?
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