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1. Salaries A/c to Purchase A/c 7,500 2. New Furniture A/c ... 600 Loss on Furniture A/c ... 150 To Old Furniture A/c 350 To Cash A/c 400 For 2, net entry for Furniture A/c can also be passed. Also, assumed here furniture is currently appearing in books at cost
Sahibdeep Singh
1. Salaries A/c to Purchase A/c 7,500 2. New Furniture A/c ... 600 Loss on Furniture A/c ... 150 To Old Furniture A/c 350 To Cash A/c 400 For 2, net entry for Furniture A/c can also be passed. Also, assumed here furniture is currently appearing in books at cost
Tysm sir.. Sir it's a request from my side cn u plzz explain me the first entry m soo much confused in tht..
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Tanya BatraTysm sir.. Sir it's a request from my side cn u plzz explain me the first entry m soo much confused in tht..
It is like instead of cash, they are taking stock. So, instead of salaries to cash, we write salaries to purchases. Here, we are not considering Rs. 10,000 as sale because company won't be making profit out of its own employees. It's same as if the owner had taken home goods which we show as drawings at cost price
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