How to make accounting entries for the purchase of equipment.
Payment by promissory note, payment should be: Debit: Other receivables/accounts receivable (this depends on your accounting system) 560000 Credit: Cash 6000 Other monetary funds - bank draft deposits 500000 When the invoice is received: (assuming 17% tax rate) Debit: Fixed assets 526495.73 Tax payable - VAT payable (input) 33504.27 Credit: Other receivables/accounts receivable (this depends on your accounting system) 560000