timber used for making office furniture 5000 (assume that the firm is a timber merchants) what is the journal entry? plss answer fast
Answers
Answer:
Furniture a/c dr 5000
To Purchases a/c 5000
Explanation:
In an organization's accounting system, a journal entry documents a commercial transaction. The foundation of the double-entry accounting method, which has been around for centuries, is made up of journal entries. They enable tracking of the purposes for which a company has spent its resources and the sources of those resources.
The elements of a journal entry are as follows:
The transaction's date
The name and number of each afflicted account.
The total of the credit and debit
A reference number that acts as the transaction's special identifier
An explanation of the deal
Every transaction must be documented in at least two accounts according to the double-entry accounting technique. For instance, a cash purchase of supplies by a company will be recorded in both the supply account and the cash account.
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Answer:
Furniture a/c dr 5000
To Purchases a/c 5000
Explanation:
- A journal entry records a business transaction in the accounting system of an organisation. Journal entries are the cornerstone of the double-entry accounting method, which has been used for millennia. They make it possible to keep track of the objectives for which a business has used its resources as well as the sources of those resources.
- The following are the components of a journal entry:
- Date of the transaction
- Each affected account's name and number.
- the combined credit and debit amount
- a reference number serving as the unique identifier for the transaction
- A description of the arrangement
- The double-entry method of accounting requires that each transaction be recorded in at least two accounts. For instance, a corporation will record a cash supply purchase in both the cash account and the supply account.
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