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
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 Amount withdrawn by owner for his personal expenses - This will be treated as drawings Capital A/c (Drawings A/c) Dr 2500 To Cash/Bank A/c 2500 (Being Amount withdrawn by Owner for his personal expenses)
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