Question

Give journal entry of credit sale of old furniture to prem 1700

Answer 1

Prem Dr. 1700
To Furniture 1700
(Being Furniture sold to Prem on credit)

Answer 2

Journal Entry

Particular                         Dr.(Amount)         Cr.(Amount)

Prem A/C      Dr.                   1700

       To  Furniture A/C                                       1700

(Being Credit sale of old furniture)

Explanation:

BASIC RULES FOR JOURNAL ENTRY

Decrease  in Asset (Credit)

Increase in Asset (Debit)

Aspect 1.  Furniture is sale and furniture is asset and decrease in asset debit

Apect 2.  prem(vendor) is Increased and Prem(vendorr) is Asset and in Increase in Asset (Debit)  

Note: the Person from which we purchase asset is called vendor