Question

What will be the journal entry for paid for office furniture and fittings by cheque 4000?

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Furniture and fittings - Real A/c , furniture is coming inside to company as an asset , therefore its should be debited.

Bank A/c - personal A/c , here banks pays money to supplier , where bank is giver therefore its credited

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Journal entry

Furniture and fittings A/c Dr 4000

To Bank A/c 4000

(being furniture and fittings purchased )

Answer 2

The furniture and fitting account will be debited and Bank's account will be credited.

• A journal entry is the record of the various financial transaction of a business in its financial books.
• The transactions of a business are recorded in a journal, which indicates the debit and credit balances.
• The rule is to debit all costs and losses, credit all profits and gains, often known as debit the recipient, and credit the giver.
• These specific entries can help in the authentication of transactions and also helps to know if they are supported with bills.
• In the given statement, an amount of Rs. 4000 is being paid for office furniture and fittings
• Thus, the correct journal entry will be -

Furniture and fittings A/c Dr 4000

To Bank A/c 4000

( Being furniture and fittings purchased )

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