Accounting entry

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12 February 2013 What will be the accounting entry if an asset is purchased from General Reserve?

Vishaljeet Singh

Vishaljeet Singh (Expert)
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12 February 2013 1.General reserve a/c Dr
To Asset Fund a/c

2.Asset Fund Investment a/c Dr
To Bank a/c

3.Bank a/c Dr
To Asset fund Investment a/c

4.Asset a/c Dr
To Bank a/c

Now, Asset fund (amt transferred from General reserve) will stand on liability side of B/s & General reserve will be reduced by that amt & Asset a/c will be raised on the Asset side of B/s.

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