Question

journal entry of furniture purchased for office use

Answer 1

Furniture purchased for office use -

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.

So, The journal entry for the above transaction will be :-

Furniture A/c. Dr... [Amount]
To Cash A/c. [Amount]

(Being Furniture purchased for Cash).

Answer 2

Answer:

Furniture A/C             dr.

To Cash/Bank A/C

(Being furniture purchased for office)

Explanation:

The furniture account is an asset account hence it is debited as asset accounts are debited on increase. Cash and bank accounts are also assets accounts and they are credited as they are decreased on the purchase of furniture.

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