The Purchase Of An Asset For Cash
The purchase of an Asset for Cash or on account or credit is made only for using the asset in the business and not for resale purposes. When the company or the corporation purchased an asset for cash, then it results in the debit of asset account and credit to cash account. You Can Also Read Out, “ The Purchase Of An Asset On Account ” For example, if the company purchased furniture Rs. 50000 for cash from Mr. A & Co. to be used in the business, then it is a purchase of furniture for cash and following Journal Entry can be recorded as follows: Furniture a/c 50000 ...