Assets are recorded on the balance sheet at cost, meaning that all costs to purchase the asset and to prepare the asset for operation should be included. 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. If you are thinking about purchasing a business from someone, you should be aware of Pennsylvania's Bulk Sale Law. To record the entry, the company will debit the purchase account, and a credit entry will be recorded under accounts payable. THIS ASSET PURCHASE AGREEMENT (this "Agreement"), dated as of September. The purchase of property, plant, or equipment results in a debit to the asset section of the balance sheet. Merchandise are purchased either for cash or on account. Consider all costs at time of acquisition or construction.