Question

Journal entry for furniture fitting

Answer 1

Answer:

Explanation:

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Furniture and fittings - Real A/c , furniture is coming inside to company as an asset , therefore its should be debited.

Bank A/c - personal A/c , here banks pays money to supplier , where bank is giver therefore its credited

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Journal entry

Furniture and fittings A/c Dr 4000

To Bank A/c 4000

(being furniture and fittings purchased )

Answer 2

reason for debit and credit

Furniture and fittings - Real A/c , furniture is coming inside to company as an asset , therefore its should be debited.

Accounts involved, i.e., Furniture account and cash account. Both the accounts are Real in nature. According to the rule of Real Account, ( Debit what comes in, Credit what goes out ). Furniture is coming into the business, therefore, it will be debited and as cash is going out of the business, it will be credited.

Explanation:

I hope it helps you