Fixed assets accounting entries involve the recording of physical assets that are used in business operations and which have long-term value. This can include items such as buildings or land, furniture or equipment. These types of assets have a finite life span, so it’s important to track their worth over time. Fixed asset entries typically consist of debits for purchase cost and accumulated depreciation and credits for accounts payable. These entries are key to understanding the financial health of any organisation, as it allows them to properly assess the value of their assets and plan for their future use.