Treating a purchase of fixed asset in accounting; it is added in the fixed assets site of balance sheet (वासलात) and deduct deprecation, if any and less from cash or bank a/c.  If transaction is based on credit then it is added on the liabilities site of balance sheet.

 Adjustment entry in the book of….

Fixed assets (related) …. Dr

To Bank a/c

(Being purchase of fixed assets)

Deprecation a/c………Dr

To Fixed assets (Related)

(Being deprecation charged on fixed assets)

Sometimes fixed assets are accounted in purchase book, on such condition below adjustment is done.

Adjustment entry in the book of..

Related fixed assets a/c…. Dr

To Purchase a/c

(Being purchase of assets recorded)

Treatment in the final Account

On the debit site of final account, it is lessen from purchase

(To Purchases….

Less: Fixed assets…) 

Understanding of Purchase book? Keep on waiting for next blog.