Fixed assets purchase entry in tally erp 9

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Business purchases fixed assets for its operations like plant and machinery for manufacturing process, Land and building for setting up office and factory.Furniture and fittings,computers and software for office operations. In this lesson we will learn how to account fixed assets in tally erp 9.

FIxed asset accounting in tally erp 9

First thing to enter a fixed asset purchase is creating a fixed asset ledger. You can learn how to create a ledger in tally erp 9 through our previous post.

More reading : How to create a ledger in tally erp 9

Which voucher type is used for entering Fixed asset

It is a bit confusing subject for beginners which voucher type is used for entering a fixed asset purchase.To account a fixed asset purchase in tally erp 9, normally we use journal voucher ,however you can use purchase voucher to enter purchase of fixed assets in latest versions of tally erp 9.

Example of Fixed asset purchased on credit.

When purchasing a fixed asset on credit from a party we debit fixed asset and credit party account.let’s do the following example to enter a fixed asset purchase on credit.

Also Read : How to create sundry creditors ledger

ABC Ltd bought Furniture for Rs 50000 from Woodland furniture on 01-04-2016

Let’s enter this transaction into journal voucher of tally erp 9

Go to Gateway of tally>Accounting Voucher>F7 Journal Voucher

Change date if required by pressing F2 key.

In the journal voucher enter Furniture after debit that is after By and party name after  To as shown in the picture below.


Press enter and save, That’s it your are done.

Fixed asset cash purchase entry

To enter cash purchase of Fixed asset,cash purchase you can use cash payment voucher.

To do this go to Gateway Of Tally>Accounting Voucher > F5 Payment

Change date if required,

Account :cash

Particulars: Furniture

Enter amount in the amount field. The final voucher will look like this.


Press enter and accept the screen.

Now you can enter fixed asset purchase using purchase voucher in tally erp 9 learn how ?.

Comments (7)

  • hello, I know how to book Fixed Assets Purchased but in cases where fixed asset is manufactured in house, What should be treatment of it? How can we show inventory bought and consumed for the purpose of creating Fixed Asset and how can we link that consumption of Inventory with the Fixed asset account created for that purpose.

    In Nutshell, I want to show fixed asset manufactured in the company factory by using Raw Material specifically purchased for production of Fixes Asset. Can it be possible in Tally ERP 9?

    • You can book in house manufacturing of fixed asset this way.

      Create a ledger in the name of Fixed asset.for example Furniture Account
      Book all expense like purchase of raw materials,wages and other expense related to the production in the same ledger.
      The total of fixed asset ( furniture) account will be treated as the cost Fixed asset.

  • I have a question regarding what should be the voucher for a downpayment purchase of a fixed asset

    For e.g A cement company purchasing a computer (fixed asset ) with 100 % down payment.

    Journal Entry of the same will be

    Fixed Asset A/c Dr
    To Cash/Bank A/c

    So will this come under Payment Voucher whilst purchasing on downpayment

    For a credit purchase the Voucher is Journal but as i said i was a bit confused as to what will the voucher for downpayment be either in cash or through cheque

  • Dear, as we are not receiving corresponding item (fixed asset) or invoice from supplier at the time of down payment, we must debit the supplier and credit the cash.

    (Payment voucher)
    ABC ltd A/c Dr
    To Cash A/c

    Once you received your invoice you can record transaction for fixed asset

    Fixed asset A/c Dr
    To ABC ltd A/c

    Consider, you will get only cash/cheque receipt from your supplier when you pay them downpayment.

    And this you can record in payment voucher as well as journel

  • if i have purchased some wooden cabinets for office & the installation charges entry if i suppose to post then how to do that?

  • I have a question regarding the purchase of a fixed asset, how will entry in tally of Fixed asset & can we take input tax credit against Fixed asset biil.

  • Hi
    My company in Dubai and my boss purchase flat for his personal use so how I can enter in tally


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