• Answer of this question

    I want to ask an journal entry. The question is :•Furniture purchase o
    Maninder's image
    Maninder

    Practically you need to pay cash or cheque to buy furniture 

    So it should always be

    Furniture dr

       To party/bank/cash

     

    If suppose we r purchasing furniture by giving share in capital. Entry should be

     

    Furniture dr

      To share capital

     

    From a bookish point of view the entry in your case should be

    Furniture dr

    To capital reserve


    Written on Nov. 27, 2017, 7:18 p.m.