purchased furniture for office use for cash 20000 in general enteries Related: Purchases(Journal) book

Question

purchased furniture for office use for cash 20000 in general enteries Related:  Purchases(Journal) book

Answer

Purchases Journal Entry for Cash Purchase of Furniture for Office Use

1. Identify the Accounts Involved

2. Determine the Amounts Involved

3. Record the Journal Entry

4. Explanation of the Journal Entry

The Furniture Account is debited as it is an asset account and the value of the asset has increased with the purchase of furniture for office use.

The Cash Account is credited as cash was used to purchase the furniture for office use.

5. Importance of Maintaining Purchase Journal

It helps to keep track of all purchases and ensures that all transactions are recorded accurately.

The purchase journal is useful for preparing financial statements and tax returns.

It helps in identifying any errors or discrepancies in the purchase transactions.

6. Conclusion

The purchase journal entry for the cash purchase of furniture for office use involves debiting the Furniture Account and crediting the Cash Account.

Maintaining a purchase journal is essential for accurate record-keeping and financial reporting.

Answer

Furniture A/c Dr.
To Cash A/c

Answer

Furniture A/C.....dr 20000
.....To cash A/C ..............20000

Answer

Purchase furniture on cash Rs.20,000