Question

sold household furniture and paid the amount into Business 2,000. what is the journal entry ?

Answer 1

"The entry to sell the household furniture will be:

Cash/Bank a/c dr. 2000

To Furniture a/c. 2000

Since the household furniture is sold hence the money that is earned by it will be invested in a business, hence the above entry will be final.

Since, after that, the furniture will be sold successfully.

"

Answer 2

Answer:Cash A/c Dr. 2000

To Capital A/c 2000

(Household furniture sold and amount paid into business)

Explanation: Since household furniture refers to the private property of the proprietor. So it'll be assumed that fresh capital is introduced. Also as most of the transaction of small amounts are done with cash so Cash A/c will be debted.

Hope it helps!!