What Are Tangible Assets - Definition - Meaning - Examples - Explanation

Tangible Assets are those Assets which we can see and touch. These can be either Current Assets or Non Current Assets / Fixed Assets on the Balance Sheet. Examples are Cash, Inventory / Stock, Land, Buildings, Machinery, Plant & Machinery, Furniture & Fixtures, Office Equipment, etc.

The Normal Balance for Tangible Assets is Debit, However, when these are acquired or purchased for the use in the business, we Debit these one, but, when we sold out these, then we credit these one.

Tangible Assets Journal Entry

Suppose ABC Company acquires a Machinery, Costing Rs. 50000 for Cash, then following Entry is passed in the General Journal of the Business:

                                           Machinery a/c     50000

                                                                 Cash a/c     50000

(Machinery Purchased For Cash)

Here Machinery and Cash, both are Tangible Assets. One is Increasing as we acquired it (Machinery) and other is decreasing as it (Cash) is going out of the business.

Tangible Assets T- Account is prepared to show related Business Transactions. Depreciation is Charged on Tangible Non Current Assets and these are recorded at Book Value on Balance Sheet.