What will be the journal entry for goods used in making furniture ( sale price 5000 and cost price 4000) journal entry
Answers
Explanation:
Furniture A/c Dr. 4,000
To Purchases A/c 4,000
(being own stock used for making furniture costing 4,000)
Answer:
Every business transaction should be recorded in at least two places, according to the reasoning behind a journal entry (known as double entry accounting).
Explanation:
The transaction "furniture is sold for cash" has the following journal entry:
Cash/Bank A/c Dr. 5000
Profit and Loss A/c Dr. 1000
To Furniture A/c 4000
Cash comes in here, and furniture leaves, thus we must debit what comes in and credit what leaves in this transaction. As a result, this transaction is noted in the cash book.
We sold furniture, which is an asset that leaves the company and is therefore credited. We received Cash/Cheque(Bank) against Furniture Sold that is Debit. Due to the nature of the remaining 1000 being a profit, profit and loss accounts are debited.
A journal entry is used to record a business transaction in the company's accounting records. The main ledger is where journal entries are frequently made, however they can alternatively be created in a subsidiary ledger and then rolled forward into the general ledger after being summarized. After that, financial statements for the company are generated using the general ledger.
Learn more about it:
https://brainly.in/question/19388217
https://brainly.in/question/2341785
#SPJ2