**Journal Entry for Selling Furniture at a Profit of 10%**

In this journal entry, we will record the transaction of selling furniture at a profit of 10%. Let's assume that the furniture originally cost Rs. 1,00,000 and its book value is Rs. 80,000. The sale of this furniture will generate a profit of 10%.

**1. Determine the Selling Price:**

To calculate the selling price, we need to add the profit percentage to the book value. The profit percentage is 10% of the book value (Rs. 80,000).

Profit = 10% × Rs. 80,000 = Rs. 8,000

Selling Price = Book Value + Profit = Rs. 80,000 + Rs. 8,000 = Rs. 88,000

**2. Journal Entry:**

On the date of the sale, we need to record the following journal entry:

**Furniture A/C** (Debit) - Rs. 80,000
**Profit on Sale of Furniture A/C** (Debit) - Rs. 8,000
**To Sales A/C** (Credit) - Rs. 88,000

**3. Explanation:**

- **Furniture A/C** (Debit): We debit the Furniture A/C with the book value of the furniture (Rs. 80,000) to reduce its balance as it is being sold.
- **Profit on Sale of Furniture A/C** (Debit): We debit the Profit on Sale of Furniture A/C with the profit amount (Rs. 8,000) to record the increase in profit.
- **Sales A/C** (Credit): We credit the Sales A/C with the selling price of the furniture (Rs. 88,000) to record the revenue generated from the sale.

**4. Impact on Financial Statements:**

- **Income Statement:** The profit on the sale will be reflected in the income statement as an increase in profit.
- **Balance Sheet:** The furniture's book value will be reduced by Rs. 80,000, and the profit on the sale will be added to the owner's equity or retained earnings.

**Conclusion:**

By following the above journal entry, we have successfully recorded the sale of furniture at a profit of 10%. This entry will help us accurately track the financial impact of the transaction and ensure the correct presentation of the figures in the financial statements.

Bank a/c dr. 88000 to machinery. 80000 to profit&loss a/c. 8000