Real Estate

Cash Purchase of Commercial Building

Recording the outright purchase of a commercial building paid in full.

Account NameTypeDebit ($)Credit ($)
Building (Fixed Asset)Asset (+)500,000.00-
Cash / BankAsset (-)-500,000.00

💡 Accountant's Note

The building is recorded at its full purchase price. Land and building costs should be separated because land is never depreciated, while the building is depreciated over its useful life.

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