Question

Furniture costing Rs. 5,000 used in the furnishing of the office.

Answer 1

Explanation:

The journal entry is

Furniture a/c ……Dr 500

To Purchase a/c. 500

(Goods used to furnish the office)

Rationale

Furniture is an asset and hence it is debited and purchase is also treated as real a/c and hence it is credited)

The rule is debit what comes in credit what goes out.

Answer 2

Entry :-

Furniture A/c______________Dr.

_________To Purchases________

This has happened because the furniture are made out of the goods of which firm is dealing with. Therefore, Furniture comes in and Goods goes out.

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Explanation:

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