journal entry
sale of old furniture rs 300
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Journal Entry for the sale of furniture for cash:
Cash A/c …….. Dr
To Furniture A/c
[Being the sales furniture for cash ]
Cash A/c Debit because cash is (Real Account), and comes in, any type of assets comes in is debit based on Golden rules.
Furniture A/c is assets and assets is (Real Account). Therefore Furniture A/c Credit because of Cash a/c goes out, and any types of assets go out is credit based on the Debit and Credit Rules.
Rules:
Cash - Real Account - Comes in - Dr
Furniture - Real Account - Goes out - Cr
Golden Rules:
Personal Account:
Debit the Receiver, Credit the Giver
Real Account:
What cames in Debit and what Goes out Credit
Nominal Account:
Expenses & Loss Debit, and Income, Profit Credit
I hope this answer helps you.
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