Fixed asset journal entries are the bookkeeping steps used to record the acquisition and disposal of a fixed asset. A fixed asset is an item with a useful life of more than one year that is not considered as inventory by the organization using it. Fixed assets can include land, buildings, equipment, furniture, fixtures and vehicles. When a business buys a fixed asset, they must record it in the journals with an appropriate debit and credit. When they sell or otherwise dispose of a fixed asset, they must also make a corresponding journal entry. This ensures that the fixed assets are accurately reflected in financial records, which helps improve decision-making within the business.