Question

journal entry for Bought toys for son ₹5000. ​

Answer 1

Answer:

There is no journal entry for this transaction , because it is not a transaction affecting business and it is a non - business transaction ( not a business transaction ) It is a personal transaction of owner or other members of the business. So , That's why it is not recorded in the books of firm / business.

Transactions Affecting the business are ;

• Started business with cash

• Cash deposited into bank

• Purchased goods for office use

• Sold goods for cash or credit

• Commission received

• Rent paid / received

• Insurance paid

• Salary paid

etc..