Question

journal entry
1) cash received from the sale of personal asset deposited in the firm account
2) cheque received as an advance against the above sale paid into the bank

Answer 1

Answer:

1) Sale of personal asset is always considered as additional capital. So the journal entry will be -

Bank A/C Dr. _____

To Capital A/C ______

2. When the cheque received is not deposited in bank the same day and is deposited on some other date, it's always considered as Cheque in hand.

So journal entry will be -

Bank A/C Dr. _____

To cheque in hand A/C ____

Answer 2

The following journal entry shall be passed:

Bank A/c                                ---dr                   XXX

         To Capital A/c                                                 XXX

(Being Cash deposited in bank and added into Capital.)

GIVEN: Cash received from the sale of personal asset deposited in the firm account.
TO FIND: Journal Entry to be written for the given transaction.
SOLUTION:

As we are given in the question,

In this question, The business firm sells a furniture for the cash and the money received buying selling the furniture is added into the Capital account of the business.

Therefore,

The journal entry to be passed when furniture is sold and the money is added  into the business:

Bank A/c                                ---dr                   XXX

         To Capital A/c                                                 XXX

(Being Cash deposited in bank and added into Capital.)

#SPJ2