Purchasing Equipment On Account Journal Entry is a form of finance used when acquiring tangible assets, such as equipment. The entry involves the transfer of funds from the creditor to the business for the purchase price of the asset, which will then be paid back with interest over time. This type of journal entry can help businesses acquire necessary, high-cost items without straining their cash flow all at once. A Purchasing Equipment On Account Journal Entry allows companies to spread out their payments and stay on top of their finances.