Real Estate
Cash Purchase of Commercial Building
Recording the outright purchase of a commercial building paid in full.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Building (Fixed Asset) | Asset (+) | 500,000.00 | - |
| Cash / Bank | Asset (-) | - | 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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