Ram purchase furniture for cash rupees 7000
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Furniture a/c....... D r. To cash a/c
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The Current transaction affects two accounts .. Furniture account, cash account.. because furniture is bought for cash ...(they ar Real accounts; all assets and Liabilities come under Real account; furniture and cash are assets) ..
The Three golden rules of accounting are....
Personal Account: Debit the receiver, credit the giver
Nominal account: Debit All expenses and losses, credit All incomes and gains
Real Account: Debit what comes in ,credit what goes out
In contention with the above rules...
furniture account should be debited (it is a Real ccount/furniture is coming ine)
cash account should be credited (it is a Real account/cash is Going out)
The Journal Entry will be....
Furniture a/c Dr 7000
To cash a/c. 7000
(Being furniture purchased)
The Three golden rules of accounting are....
Personal Account: Debit the receiver, credit the giver
Nominal account: Debit All expenses and losses, credit All incomes and gains
Real Account: Debit what comes in ,credit what goes out
In contention with the above rules...
furniture account should be debited (it is a Real ccount/furniture is coming ine)
cash account should be credited (it is a Real account/cash is Going out)
The Journal Entry will be....
Furniture a/c Dr 7000
To cash a/c. 7000
(Being furniture purchased)
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