Question

Purchased furniture for office How to know in this transaction that cash is involved

Answer 1

Since ,nothing is mentioned in the question regarding creditor..we should consider it to be a cash transaction/ cash is involved..... if suppose in the question if you find Purchased furniture from Rohit then you can treat it as furniture taken on credit..Which is not present in the present question so it is a cash transaction...

the transaction affects two accounts here..... furniture a/c and cash a/c ..where both of them fall under "Real" accounts category.... Going by the golden rules for accounting related to 'Real'accounts.."What Comes in should be debited and what goes out should be credited"..here since cash is outgoing or decreasing.it should be credited to that extent and since furniture is incoming/or increasing...it should be debited to that extent....When asset increases it should be debited and when it decreases should be credited.....

so the journal Entry for furniture Purchased for office use will be

Furniture a/c. Dr. xxxxx

To cash a/c. xxxxx

(being furniture Purchased for office use)

Answer 2

furniture a/c dr    xxx
        to cash .               xxx