Question

What is a adjustment of old furniture worth rupees 800 was sold at rupees 1200 this entry recorded in a sales book

Answer 1

Answer:

i m solving it if it is before preparing final ac

as furniture is sold it should be credited bt sales is credited

so

sales acount dr. 1200

to profit and loss ac. 400

to furniture ac 800

if it is after the final acc is prepared

profit and loss adjustment account will be opened so entry would be

p&l adjustment acc dr 800

to furniture acc. 800