Question

How put journal entry goods taken for office use

Answer 1

Given"Goods taken for office use"

This transaction affects two accounts Purchases a/c , cash a/c..where Purchases is a nominal account(all expenses incomes gains losses come under nominal account) , cash is a real account.(All assets and Liabilities come under Real account)..


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

As Per the above rules..since Purchase is expense should be debited and cash is going out should be credited....



The Journal Entry will be..

Purchases a/c. Dr. xxxx

To cash a/c xxxx

(Being Goods Purchased for cash)

Answer 2

Journal entry

Purchases A/c Dr .....

To cash A/c .....

(Being goods taken for official use)