brought furniture from S.R furnisher agaist cash journal entry
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furniture a/c.......dr
to cash a/c
to cash a/c
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Given "Bought Furniture from S.R Furniture against cash"
This transaction affects two accounts, Furniture a/c(we are Purchasing it) , Cash a/c (We are paying cash for it)... Furniture and cash accounts are Real accounts (all the assets and Liabilities come under Real account)
The Three golden rules of accounting are
Personal Account - Debit the receiver ,credit the giver
Real Account - Debit what comes in ,credit what goes out
Nominal Account - Debit All expenses and losses, credit All incomes and gains
In contention with above rules... Furniture comes in ,so should be debited whereas cash is Going out,so should be credited...
The Journal Entry will be
Furniture a/c Dr xxxxx
To Cash a/c. xxxxx
(Being furniture Purchased for cash)
This transaction affects two accounts, Furniture a/c(we are Purchasing it) , Cash a/c (We are paying cash for it)... Furniture and cash accounts are Real accounts (all the assets and Liabilities come under Real account)
The Three golden rules of accounting are
Personal Account - Debit the receiver ,credit the giver
Real Account - Debit what comes in ,credit what goes out
Nominal Account - Debit All expenses and losses, credit All incomes and gains
In contention with above rules... Furniture comes in ,so should be debited whereas cash is Going out,so should be credited...
The Journal Entry will be
Furniture a/c Dr xxxxx
To Cash a/c. xxxxx
(Being furniture Purchased for cash)
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