Accounting Entries Related to Assets and Depreciation

Let us see the accounting entries related to assets and depreciation:

S.No.

Particulars

Journal Entries

1

Purchase of Fixed Assets

Asset A/c	Dr.
To Bank A/c

2

Expenses on purchase of Fixed Assets

Related Asset A/c	Dr.
To Cash/Bank A/c

3

For Providing depreciation

Depreciation A/c	Dr.
To Assets A/c

4

Transfer of depreciation to Profit & Loss a/c

Profit & Loss A/c	Dr.
To Depreciation A/c

5

Sale of Assets

Bank A/c	Dr.
To Assets A/c

Depreciation  =   Cost of Assets−Scrap Value of AssetsEstimated Life of Assets