Journal Entry for Furniture Purchase with Cheque Payment and Discount

The journal entry for the transaction of Reeta purchasing furniture for Rs 5000, paying via cheque, and receiving a 5% discount can be recorded as follows:

Date | Particulars | Debit | Credit
-----|------------|-------|-------
[Date] | Furniture A/c | Rs 5000 | -
| Bank A/c | - | Rs 4750
| Discount Received A/c | - | Rs 250

Explanation of Journal Entry

The above transaction involves the following accounts:

Furniture A/c: This account represents the purchase of furniture, which is an asset for the business. Hence, it is debited with the total cost of furniture, i.e. Rs 5000.

Bank A/c: This account represents the payment made by Reeta against the purchase of furniture. As the payment was made through a cheque, the bank account is credited with the amount of Rs 4750, which is the discounted amount after deducting 5% from the total cost of furniture.

Discount Received A/c: This account represents the discount received by Reeta on the purchase of furniture. As per the transaction, she received a discount of 5% on the total cost of furniture, which is Rs 250. Hence, this account is credited with the discount amount.

Conclusion

In conclusion, the journal entry for the transaction of Reeta purchasing furniture for Rs 5000, paying via cheque, and receiving a 5% discount can be recorded by debiting Furniture A/c, crediting Bank A/c, and crediting Discount Received A/c. This entry helps to keep track of the monetary transactions involved in the purchase of furniture and the discount received by Reeta.

Furniture a/c dr. 5000
To Bank a/c. 4750
To Discount received a/c. 250
(being furniture purchased)