Question

sold unused furniture costing rs 20000 for rs 22000 journal entry​

Answer 1

Answer:

this is the ans hope it helpz you ...

Answer 2

Cash A/c                                                     ----dr       20,000

Profit and Loss A/c                                    -----dr        2,000

                  To Furniture A/c                                                              22,000

(being unused furniture sold on the loss of Rs.2,000.)

GIVEN: Sold unused furniture costing Rs 20000 for Rs 22000.
TO FIND Journal Entry for the furniture sold on loss.
SOLUTION:
As we are given in the question,

A business firm sells unused furniture costing Rs.20,000 for Rs.22,000.

Therefore,

STATEMENT OF PROFIT/LOSS ON SALE OF FURNITURE.

Cost of furniture                                                      22,000

LESS: Amount for which furniture was sold           20,000                                                    

Loss on sale of furniture                                            2,000

Therefore,

The journal entry to be passed for selling unused furniture at prices lesser than it was bought will be as follow:

Cash A/c                                                     ----dr       20,000

Profit and Loss A/c                                    -----dr         2,000

                  To Furniture A/c                                                              22,000

(being unused furniture sold on the loss of Rs.2,000.)

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