Journal entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2014 Mr.A is running Furniture Business. He bought 10 chairs at
Rs.1000 each. He used one chair for his personal use.

TKKKKKK

TKKKKKK (Expert)
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26 April 2014 Depends on whether one chair is used at home or office which owner purchased for him.

furniture a/c DR/capital a/c Dr 1000
stock a/c DR 9000
To cash/bank a/c 10000

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Nischit Sanghavi

Nischit Sanghavi (Expert)
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26 April 2014 Chair purchase for personal use will be shown as Fixed Assets.
Furniture & Fixture A/c Dr 1000*1
To Creditors A/c 1000*1

For remaining chairs
Purchase A/c Dr. 1000*9
To Creditors A/c 1000*9

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Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2014 thank u experts
but as per the expert, ca tarannum khatri

why the stock a/c are debited??

Santosh Kalburgi

Santosh Kalburgi (Expert)
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27 April 2014 Hello,

Youo can first pass a regular entry i.e entry for 10 chairs

First entry:
Furniture Stock A/c debit (1000*10)
TO Cash or Creditors A/c (1000*10)
Narration Stock account is debited as by purchasing materials you stock increases or since its a real account you need to debit what comes in and credit what goes out(cash)

Second entry
Capital A/c Debit (1000*1)
To Furniture Stock A/c(1000*1)
Narration Since your capital gets reduced when you are withdrawing from your business the same has to be debited. Stock a/c being a real a/c gets credited as the stock is going out and thereby reducing your stock.

Regards,
Santosh G Kalburgi
Cost Accountant, Bangalore
9742022309

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