What is the Buildings Account?

The buildings account is a fixed asset account that contains the carrying amount of the buildings owned by an entity. The carrying amount is the original purchase price, plus later capitalized additions, minus accumulated depreciation and any asset impairments. If a building is constructed, then the account also contains the capitalized cost of any interest incurred during the construction process.

If a building is eventually sold, the sale price is netted against this account to determine whether a gain or loss occurred.