Question

Goods used in making of furniturevsales price2000 cost 1500

Answer 1

Answer:

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.