Question

furniture purchase for cash 5000
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Answer 1

Furniture purchase for resale purpose we will assume that this is your regular business activity. It is treated as goods. And on this funiture depreciation will not allowed.

Therefore, Journal entry of Resale furniture is,

Purchase A/C Dr…. Rs.5,000

To Cash/Bank A/C Rs.5,000

(Being the goods purchase)

And second journal entry for furniture use for office decoration.

Furniture A/C Dr….. Rs. 3,000

To Cash/Bank A/C Rs. 3,000

(Being the amount of furniture purchase)

Combined Journal entry

Purchase A/C Dr…. Rs.5,000

Furniture A/C Dr…. Rs.3,000

To Cash/Bank A/C Rs.8,000

(Being the amount of furniture and goods purchased)