The purchase of property, plant, or equipment results in a debit to the asset section of the balance sheet. When you first purchase new equipment, you need to debit the specific equipment (ie, asset) account.And, credit the account you pay for the asset from. A purchase credit journal entry is recorded in the company's purchase journal when buying goods or services on credit from a third party. Merchandise are purchased either for cash or on account. In the first entry, we debit the accounts receivable account and credit the purchase returns and allowances account. Prepare pre numbered bill of lading 2. Assets purchased are not represented through Purchases but with the name of the Asset. Journal Entry: (When Assets are Purchased). Example:. When a company purchases something, you usually debit what was bought.