Question

Furniture costing¥15000 sold for 18000brokerange sale 1000

Answer 1

This transaction affects 4 accounts... Furniture account, sales account, profit on sale of furniture account, brokerage account.... Real account denotes all assets and liabilities.. whereas nominal account denotes all expenses and losses, incomes and gains.. So Here Furniture account is a real account and sales,profit on sale of furniture account, brokerage account are nominal accounts..

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

Going by these rules. Furniture is going out so should be credited and cash is incoming so debited.. profit on sale of furniture account is income so should be be credited and brokerage is an expense so should be debited...So


The Journal Entry will be


Cash a/c. Dr 17000

Brokerage a/c Dr 1000

To Furniture a/c 15000

To Profit on sale of furniture a/c. 3000

(Being Furniture Sold )

Answer 2

Answer:

cash a/c Dr. 17,000

To profit on sales a/c 2,000

To furniture a/c 15,000

Explanation:

we don't show expenses on sales of fixed assets but deduct the value from realised value