Let's see how to record the purchase of Fixed Assets
You need to create an account for Fixed Assets through Accounting > Chart of Accounts
Like shown in the above image, fill in the details :
Account Name : Enter the name for the Fixed Asset
Account Group : Select Fixed Asset from the drop down
Effective Date : Select the date
Opening Balance: Enter the opening balance (purchase amount of fixed asset)
Depreciable Yes/ No : If its depreciable select Yes
Depreciation Rate : Enter the depreciation rate
Save : Click on Save and it's done.
After creating the Fixed assets let's see how to pass a journal Entry for the same.
Accounting > Chart of Accounts > Journal Entry, click on add new record.
Select the Fixed Assets account from the drop down. enter the date.
Enter the purchase price in debit column, and credit the cash account/bank account for the same amount.
User can add description in the description box.
To record the purchase of a fixed asset, debit the asset account for the purchase price, and credit the cash/bank account for the same amount. If the fixed asset is purchased on credit than credit the vendor account in place of cash/bank account.