Journal Entry for Sale and Purchase of Assets (original) (raw)

Last Updated : 16 Apr, 2026

Assets (Machinery, Building, Land, etc.) can also be purchased or sold in cash or 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: