Purchased Equipment On Account & Cash Journal Entry

A company can purchase office equipment on account and it is the case of purchase of office equipment on account or on credit. The Journal Entry should be the debit to office equipment account and credit to the Accounts Payable Account.

For example, if the company purchased office equipment for its main office of Rs. 50000 from its supplier, A & Co., then the entry to record office equipment in the Book or Journal of company is shown below:

                                      Office Equipment a/c  50000

                                                                        A& Co.  50000

                                            (Purchased Office Equipment On Account)

An Office Equipment can also be purchased for Cash. In that case, cash account is credited instead of accounts payable account. Suppose the purchase of Office Equipment is made for cash in the above case then the entry should be as follows as shown below:

                                         Office Equipment a/c  50000


                                                                           Cash a/c  50000


                                                 (Purchase Office Equipment For Cash)

You Can Also Read Out, “Sale Of Office Equipment Journal Entry”

From the first entry, we see that office equipment is debited as it is coming into the business while accounts payable as a Current Liability increases for the company as the company is liable to pay to its suppliers for the purchase of equipment, so we credit it.