Question

What will be the journal entry for furniture purchased for office use?

Answer 1

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 xxxx

To cash a/c. xxxx

(Being furniture purchased)