Journal entry

Save Share

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)

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

Message likes : 1 times

Nischit Sanghavi

Nischit Sanghavi (Expert)

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

Message likes : 1 times

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)

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

Message likes : 1 times