Equipment: debit or credit?
Equipment increases on the debit side and decreases on the credit side: its normal balance is a debit.
Assets are resources the business controls. They increase with a debit.
Name in each convention
Account names and codes follow each convention; an account that does not exist in a convention is not offered there.
| Convention | Account |
|---|---|
| United States (US textbooks) | Equipment |
| Spain (PGC 2007) | 213 Maquinaria |
| France (PCG 2025) | 2154 Matériels industriels |
| Germany (generic accounts) | Maschinen |
Practice entries that use this account
- Owner contributes a machine to start the business
- Buying equipment for cash
- Buying a computer server on account
- Buying equipment with a down payment and a note payable
- Buying equipment including freight and installation
- Buying equipment with sales tax, part paid and part on account
- Declining-balance depreciation, first year
- Depreciating several assets in one entry
- Selling a machine on account at a gain
- Selling a machine at a loss
- Scrapping a fully depreciated machine
- Owner contributes a private machine to the business during the year
- Selling a machine at a gain, with VAT
- Year-end straight-line depreciation
- A machine bought, depreciated for a year, then sold