What is the journal entry of purchased goods for cash?
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What is the journal entry of purchased goods for cash?
In the case of goods purchased for cash (cash purchase), cash goes out of the business. Purchase a/c will be debited as it is an expense. Golden rules for Nominal accounts says ‘Debit all expenses/losses’ (refer golden rule for nominal accounts in the link above).
What is the journal entry for purchasing equipment?
When you first purchase new equipment, you need to debit the specific equipment (i.e., asset) account. And, credit the account you pay for the asset from. Remember to make changes to your balance sheet to reflect the additional asset you have and your reduction in cash.
Is air conditioner an asset?
Air conditioner is Fixed asset and it is mandatory to depriciate the Air Conditioner and allied expenses(e.g.- Installation Exp.) with the same head. Air Conditioner will be shown on the asset side of the balance sheet under the head of Equipments.
What asset class is air conditioner?
fixed assets
Typical fixed assets include buildings, furniture, large pieces of equipment, and systems such as lighting and heating, ventilating, and air conditioning (HVAC).
When goods are purchased in Cash the entry will be recorded in?
Purchase return(journal)book.
Is cash a debit or credit?
When cash is received, the cash account is debited. When cash is paid out, the cash account is credited. Cash, an asset, increased so it would be debited.
How much does an air conditioner depreciate?
If the A.C. is used in office then it is classified as office equipments and thus depreciation rate is 10\%. Only when a.c. is used for production purposes it can be classified as plant and machinery. Then it will attract depreciation rate of 15\%.
What is the depreciation life for an air conditioner?
As for depreciation, if they are part of the central HVAC system you have to depreciate them over 27.5 years. If they are stand alone units, more like window AC units (i.e. not a part of the structure of the building) then you can depreciate them over a seven year period.
How do you depreciate an AC unit?