Journal entry for Joint fixed Assets Purchased

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Daya (Querist)
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15 March 2025 How to make journal entry for Joint fixed assets purchased.
And also Journal entry of Joint Bank account maintained.

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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12 August 2025 Sure! Here’s how you can pass journal entries for **Joint Fixed Assets Purchase** and **Joint Bank Account** maintenance:

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### 1. **Journal Entry for Joint Fixed Assets Purchased**

Suppose two or more parties jointly purchase a fixed asset. The cost of the asset is shared based on their contribution ratio.

#### Example:

* Asset cost: ₹10,00,000
* Partner A contributes ₹6,00,000 (60%)
* Partner B contributes ₹4,00,000 (40%)

**Journal Entry (at the time of purchase):**

| Account | Debit (₹) | Credit (₹) |
| ----------------------------- | --------- | ---------- |
| Fixed Asset (Joint Ownership) | 10,00,000 | |
| To Bank/Cash Account | | 10,00,000 |

**To record purchase of joint fixed asset**

**Simultaneously, to record the contribution by each partner:**

| Account | Debit (₹) | Credit (₹) |
| ------------------------------ | --------- | ---------- |
| Bank/Cash Account | 10,00,000 | |
| To Partner A’s Capital Account | | 6,00,000 |
| To Partner B’s Capital Account | | 4,00,000 |

**To record capital contribution by partners for purchase**

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### 2. **Journal Entry for Joint Bank Account Maintained**

If partners maintain a joint bank account where they deposit funds and operate together:

* When partners deposit money into joint bank account:

| Account | Debit (₹) | Credit (₹) |
| ------------------------------ | --------- | ---------- |
| Joint Bank Account | xxx | |
| To Partner A's Capital Account | | xxx |

(Similar credit entry for Partner B if they contribute)

* When payment is made from joint bank account:

| Account | Debit (₹) | Credit (₹) |
| --------------------- | --------- | ---------- |
| Expense/Asset Account | xxx | |
| To Joint Bank Account | | xxx |

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### Summary:

| Transaction | Debit | Credit |
| -------------------------------- | ----------------------------- | -------------------------- |
| Purchase Joint Fixed Asset | Fixed Asset (Joint Ownership) | Bank/Cash |
| Capital Contribution by Partners | Bank/Cash | Partners’ Capital Accounts |
| Deposit in Joint Bank Account | Joint Bank Account | Partners’ Capital Accounts |
| Payment from Joint Bank Account | Expense/Asset Account | Joint Bank Account |

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If you want, I can help with **examples for depreciation on joint fixed assets** or **partner’s share of expenses** from joint bank accounts. Just ask!

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