Question

F) Purchased furniture for Rs. 12,000 giving Rs. 4,000 in cash and balance on credit.

journal entry ​

Answer 1

The journal entry for the purchase of furniture for Rs. 12,000, with Rs. 4,000 paid in cash and the balance on credit, would be:

Debit: Furniture account for Rs. 12,000
Credit: Cash account for Rs. 4,000
Credit: Accounts Payable account for Rs. 8,000

Step-by-step explanation:
- Furniture account is debited as it is an asset acquired by the business.
- Cash account is credited as the payment of Rs. 4,000 is made in cash.
- Accounts Payable account is credited as the remaining balance of Rs. 8,000 is still payable on credit.