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Where does the purchase of equipment show up on a profit and loss statement?

Loss Prevention Accounting Equipments
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Question added by Joe Akiki , Internal Auditor , Bassil Audit Firm
Date Posted: 2013/06/15
Upvote (0) Views (7) Followers (2) Answers (3) Report Question
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Kripesh Krishnan Kutty Nair
by Kripesh Krishnan Kutty Nair , Merchandiser , Al Seer Group

If you are a dealer of equipment, the purchase of equipment shown on Purchase account in Trading account.
If you purchased equipment for its long term use as asset, it must go under the head of Fixed Asset in Balance Sheet.

Porferio Guimalan Jr
by Porferio Guimalan Jr , Safety and Security Officer , Santa Maria Industrial Park Corporation

I like the answer of Nishad but since you are asking and givng2 options then - purchase means you are giving away money in exchange of something so therefore its in the loss statement.

Nishad Pottandavida Chembodan
by Nishad Pottandavida Chembodan , Business Development Executive , Loreal India Pvt Ltd

Purchase of Equipment is capital expenditure in nature.
Hence it wont be shown in the profit and loss statement.
Only the depreciation on equipment will be shown in profit and loss statement

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