Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Purchase of assets from capital reserves
04-08-2010, 02:17 AM
Post: #1
Purchase of assets from capital reserves
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
Visit this user's website Find all posts by this user
Quote this message in a reply
04-15-2010, 01:04 AM
Post: #2
 
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
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)