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Question

Which of the following options is the correct journal entry for the given transaction?

Office furniture is purchased from Modern Furniture for ₹45,000. ₹15,000 is paid by cash immediately and the balance of ₹30,000 is still payable.

This question was previously asked in
SSC CGL 2019 (Tier 2) GS Finance & Economics Previous Year Paper (17-Nov-2020)
The correct answer is

Office Furniture A/c Dr. 45,000 To Cash A/c 15,000 To Modern Furniture A/c 30,000

Office furniture worth ₹45,000 was purchased from Modern Furniture. ₹15,000 was paid in cash and ₹30,000 remains payable. The correct journal entry is:

Office Furniture A/c Dr. 45,000

    To Cash A/c 15,000

    To Modern Furniture A/c 30,000

Office Furniture A/c is debited with the full purchase cost (₹45,000) as it is an asset coming in. Cash A/c is credited with ₹15,000 (cash going out), and Modern Furniture A/c (the supplier) is credited with the unpaid balance of ₹30,000 as a liability.

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Similar Questions

  1. Which of the following is NOT a limitation of financial accounting?

  2. Specific Donations are shown on the __________ whereas General Donations are taken on the __________.

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  4. In the profit and loss appropriation account, the interest on drawings is recorded on the __________ side and interest on partner's loan is recorded on the __________ side, respectively.

  5. Identify the INCORRECT statement:

  6. Which of the following expenses appear in the Profit and Loss account?


Important Questions from Financial Organisations

  1. Federation of Indian Chambers of Commerce and Industry was established in ___________.

  2. When was NABARD established?

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