purchased furniture without cash
Answers
Answered by
0
"Purchased furniture without cash" means furniture is Purchased on credit..
So this transaction affects 2 accounts...
Furniture (real account) and Creditors (Personal account)
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
Furniture is incoming/increasing so should be debited
Creditors are at the recieving end so should be credited
The Journal Entry will be
Furniture a/c Dr
To creditors a/c
(being furniture Purchased on credit)
So this transaction affects 2 accounts...
Furniture (real account) and Creditors (Personal account)
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
Furniture is incoming/increasing so should be debited
Creditors are at the recieving end so should be credited
The Journal Entry will be
Furniture a/c Dr
To creditors a/c
(being furniture Purchased on credit)
Answered by
0
Journal entry
Furniture A/c Dr
To creditor or supplier A/c
(Being purchased furniture)
Furniture A/c Dr
To creditor or supplier A/c
(Being purchased furniture)
Similar questions