Assalam u alaikum
My name is Muhammad Zubair Rafi.
What is the journal entry for a purchase of a fixed asset by utilising capital reserves? Please reply early
good day
i am very happy now because first one replay to your question
the first can i define reserve it is retained earning to meet development of company in your case you will bay to burshace assets cash , and journal entry in that case is
debit fixed assets (property , plant , and equipment )
credit cash
asumme reserve is retaind in form cash or bank
in this case decrease cash and increase fixed assetd that lead to balance basic accounting equation that it is say
assets = liabilities + equity
i hope you are understand
and i hope to you good luck and wonderful future
your brother in islam
tayaaam