Question

Purchase Motor Car worth Rs. 8000 in exchanged of Furniture worth Rs. 10000 make journal entry

Answer 1

Answer:

Motor Car a/c...…                 Dr.    8,000

Profit & Loss a/c...…..           Dr.    2,000

       To, Furniture a/c                               10,000

Explanation:

Since, Motor car is purchased, increase in asset, So, motor car will be debited.

Furniture is exchanged, for motor car, so furniture is credited. Since value of motor car is less than the value of furniture, The balance will be loss, which shall be debited to Profit & Loss A/c.