Question

Journalise this Paid for office furniture and fittings

Answer 1

This transaction affects two accounts... Furniture and fittings a/c(they are being paid for) and cash a/c (paying cash for it).... furniture & fittings and Cash accounts are Real accounts..(all the assets and Liabilities come under it)..

The Three golden rules of accounting are

Personal account- Debit the receiver ,credit the giver

Real account - Debit what comes in, credit what goes out

Nominal account -Debit All expenses and losses, credit All incomes and gains

In contention with the above rules... Furniture is coming in,so it should be debited and since cash is Going out..it should be credited..

The Journal Entry will be..

Furniture and Fittings a/c Dr

To cash a/c

(Being payment made towards office furniture and fittings)

Answer 2

3 golden rules

personal accounts - debit the received and credit the giver.

real accounts -debit what comes in and credit what comes out.

nominal accounts - debit all the expenses and losses, credit all the income and gains.

as per the question 2 accounts affect Furniture and fittings account and cash account

Furniture and fittings account- real account (treated as asset )

cash account - real account

by applying the golden rules ,

increase in Furniture and fittings ( asset ) and decrease in cash ( asset )

furniture comes in therefore it will be debited and cash goes out therefore it will be credited .

Journal entry

Furniture and fittings A/c Dr

To Cash A/c

( being Furniture and fittings purchased )

Hope its useful..!!