New assets purchased journal entries

273 views 1 replies

Hi friends,

Could anyone let me know what will be the journal entries for new assets purchase and transfer of assets to and  sale of assets with examples.

Your help will be much appreciated.

Thanks

Ali. 

Replies (1)

Hi Accounting entry will be as below

1 when u purchase new machine 

Machine A/c Dr 

Input duties & Taxes A/ c Dr 

To Supplier or Bank 

Before Selling First you should book the Depreciations if machine is been used  for that  entry will be as below

Depreciations on Machinery A/c Dr 

To Accumulated Depreciations Machinery 

When you sale it if Loss on sale of Machine entry will be as below

Bank A/c Dr

Loss on Sale of Machine A/c Dr

Accumulated Depreciations Machine A/c Dr

To Machine 

When u sale if profit on sale of Machine entry will be as below

Bank A/c Dr

Accumulated Depreciations Machine A/c Dr

To Machine

To Profit on sale of Machine

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register