When a business purchases a new asset such as a motor vehicle, it is quite common to trade in or part exchange and old asset to satisfy part of the new asset purchase cost.
Last modified November 21st, 2019
Fixed Assets
Buy Equipment with Down Payment in Cash
A business buys networking equipment to the value of 12,000 and funds the purchase with a down payment in cash of 3,000 and the balance on credit terms form the supplier of the equipment.
The double entry bookkeeping is recorded using this equipment purchase compound journal entry.
Last modified July 16th, 2019
Equipment Purchase via Loan Journal Entry
Fixed Assets Journal Entries
The fixed assets journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of fixed assets.
In each case the journal entries show the debit and credit account together with a brief narrative.
Last modified November 13th, 2019
Disposal of Fixed Assets Journal Entries
When a business has a disposal of fixed assets, the original cost and the accumulated depreciation to the date of disposal relating to those fixed assets must be removed from the accounting records. A disposal of fixed assets can occur when the asset is scrapped and written off, sold for a profit to give a gain on disposal, or sold for a loss to give a loss on disposal.
Last modified February 6th, 2023
