Journal Entry for Sale and Purchase of Assets

Assets (Machinery, Building, Land, etc.) can also be purchased or sold in cash or on credit. Assets purchased are not represented through Purchases but with the name of the Asset.

Journal Entry: (When Assets are Purchased)

Example:

1. Machinery purchased for cash ₹50,000.
2. Machinery purchased from Vishal ₹50,000.

Solution:

Journal Entry: (When Assets are Sold)

Example:

1. Machinery sold for cash ₹40,000.
2. Machinery sold to Dharmendra for ₹40,000.

Solution: