Accounting entry

This query is : Resolved

Report Abuse Follow Query Ask a Query

Guest

Guest (Querist)

12 February 2013 What will be the accounting entry if an asset is purchased from General Reserve?

Vishaljeet Singh

Vishaljeet Singh (Expert)
Follow

12 February 2013 1.General reserve a/c Dr
To Asset Fund a/c

2.Asset Fund Investment a/c Dr
To Bank a/c

3.Bank a/c Dr
To Asset fund Investment a/c

4.Asset a/c Dr
To Bank a/c

Now, Asset fund (amt transferred from General reserve) will stand on liability side of B/s & General reserve will be reduced by that amt & Asset a/c will be raised on the Asset side of B/s.

Message likes : 1 times