Purchase A/ c . Dr. 50000
To cash A/ c 20000
To creditors A/ c 30000

**Purchase of Household Goods for Rs. 50,000**

To purchase household goods amounting to Rs. 50,000, a partial payment of Rs. 20,000 is made in cash, and the remaining balance will be paid through a loan journal entry. Let's discuss in detail how this can be done.

**1. Cash Payment of Rs. 20,000:**

The first step is to make a cash payment of Rs. 20,000 towards the purchase of household goods. This can be done by withdrawing the required amount in cash from the bank or utilizing the available cash balance.

**2. Loan Journal Entry:**

Since the remaining balance of Rs. 30,000 is to be paid through a loan journal entry, we need to record the transaction in the books of accounts. The journal entry for this transaction would be as follows:

**Loan Account (Debit) Rs. 30,000**
**To Creditors Account (Credit) Rs. 30,000**

In this entry, the Loan Account is debited with Rs. 30,000, representing the increase in liability. The Creditors Account is credited with Rs. 30,000, representing the amount owed to the creditors.

**3. Explanation of Journal Entry:**

The Loan Account represents the borrowed amount that will be used to pay for the remaining balance of the household goods purchase. By debiting the Loan Account, we increase the liability of the business, as the loan needs to be repaid in the future.

On the other hand, the Creditors Account represents the amount owed to the vendor for the purchase of household goods. By crediting the Creditors Account, we acknowledge the liability towards the vendor.

**4. Repayment of Loan:**

After the purchase is made, a repayment plan for the loan amount needs to be established. This plan should include the repayment schedule, including the installment amount, interest rate, and the duration of the loan.

The loan can be repaid through periodic installments over a specific time period. The repayments can be made in cash or through bank transfers, depending on the agreement with the lender.

**Conclusion:**

To summarize, the purchase of household goods for Rs. 50,000 can be made by initially paying Rs. 20,000 in cash and the remaining balance of Rs. 30,000 through a loan journal entry. This allows for the immediate acquisition of the goods while spreading the payment over a defined period. It is essential to maintain proper records of the transaction and establish a repayment plan to fulfill the loan obligations.