Question

State the reasons whether the following statement is true or false.
Sale of office furniture should be credited to sales A/c.

• A. True
• B. False

Answer 1

The correct option is B False

Sales Account is credited when the entity sells the products/ services, in which it deals.

However ,if furniture is sold following would be the entry:

Bank A/c....Dr.

Profit/Loss A/c(loss on sale).

To Furniture A/c.

To Profit/loss A/c(profit on sale).