Journal Entry - Purchasing Furniture

Q: Record the entry for the following:

Mr Bank purchased furniture in cash.


A: The journal entry is as follows:

Debit Furniture
Credit Cash/bank

The furniture is an asset. Because assets occur and increase on the left side, this is debited.

The cash is also an asset. Since assets decrease on the opposite side, the right side, we credit the cash/bank.

For more information on this type of transaction check out the lesson on the asset example.

- Editor

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