Financial accounting bcom semester 1
This query is : Resolved
22 September 2020
Accounting equation treatment for the entry
Extra furniture worth₹2000 sold to purana for ₹2500 and entire amount was taken for personal expenses of owner
Extra furniture worth₹2000 sold to purana for ₹2500 and entire amount was taken for personal expenses of owner
26 September 2020
In this question, you can pass two entries:
1. For Sale of Furniture:
Cash/ Bank A/c Dr. 2500
To Furniture A/c 2000
To Profit and Loss A/c 500
(Being Furniture sold for profit of Rs. 500/- ( In the absence of depreciation, I had assumed there is no depreciation))
2. Amount withdrawn by owner for his personal expenses - This will be treated as drawings
Capital A/c (Drawings A/c) Dr 2500
To Cash/Bank A/c 2500
(Being Amount withdrawn by Owner for his personal expenses)
1. For Sale of Furniture:
Cash/ Bank A/c Dr. 2500
To Furniture A/c 2000
To Profit and Loss A/c 500
(Being Furniture sold for profit of Rs. 500/- ( In the absence of depreciation, I had assumed there is no depreciation))
2. Amount withdrawn by owner for his personal expenses - This will be treated as drawings
Capital A/c (Drawings A/c) Dr 2500
To Cash/Bank A/c 2500
(Being Amount withdrawn by Owner for his personal expenses)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
