wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Do we record purchase of assets in purchase book

Open in App
Solution

Dear student,
Purchase book or purchases journal is meant for recording transactions related to credit purchases of goods. However,if we purchase assets on credit, debit is given to the asset purchased and credit is given to the creditor (from whom asset has been purchased). If we purchase asset paying cash debit the asset account and credit the cash account.
Regards

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Overview of Accounting Processing
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon