Purchase of asset from fund

This query is : Resolved

Shashank Suthar (Querist)
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23 June 2014 Respected Experts,
In one Granted school, they got Rs.15000 as a sports equipment fund through bank...now what book entry accountant have pass if school buy sports equipment of Rs.7000 FROM THAT SPORTS EQUIPMENT FUND...???

Thanking you..!!!

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 June 2014 at the time of purchase,

Asset A/c dr

to bank a/

for depreciation

Sports Equipment Fund A/c

To asset a/c

Rupesh Jain

Rupesh Jain (Expert)
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23 June 2014 when make purchase entry

SPORTS EQIUpmentr a/c
to party a/c

Party a/c dr
to Bank

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Shashank Suthar

Shashank Suthar (Querist)
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24 June 2014 but sir is there any changes in sports equipment fund account because equipment purchase from that fund only...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 June 2014 Dear friend,

at the time of purchase there wont be any change.

but as and when you will charge depreciation, the fund will start reducing. refer to the second entry.

Shashank Suthar

Shashank Suthar (Querist)
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24 June 2014 ok now I got it
Thanks to all experts.

Shashank Suthar

Shashank Suthar (Querist)
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24 June 2014 ok now I got it
Thanks to all experts.