When furniture is bought by paying cash, account is credited.

Cash

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Capital

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Furniture

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Solution

The correct option is C Furniture
When furniture is bought paying money, cash which is an asset reduces. Hence, the cash account is credited.

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Similar questions

When a building is bought by paying cash, what will be the impact on accounting equation?

Q. When furniture is purchased by paying cash, the value of total assets will .

Trial balance of Raju showed an excess debit of Rs. 10,000. He put the difference to suspense account and discovered the following errors.
(i) Depreciation written-off the furniture Rs. 6,000 was not posted to furniture account.
(ii) Credit sales to Rupam Rs. 10,000 were recorded as Rs. 7,000.
(iii) Purchases book undercast by Rs. 2,000.
(iv) Cash sales to Rana Rs. 5,000 were not posted.
(v) Old machinery sold for Rs. 7,000 was credited to sales account
(vi) Discount received Rs. 800 from Karan on paying cash to him was not posted.
Rectify the errors and prepare suspense account.

Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash Rs 2,00,000

(b) Purchased goods from Naman for cash Rs 40,000

(d) Bought furniture on credit Rs 7,000

Q. Prove that accounting equation is satisfied in all the following cases:
(a) Commenced business with cash ₹ 50,000.
(b) Paid rent ₹ 4,000 including ₹ 1,000 as advance.
(c) Bought goods for cash ₹ 30,000 and on credit ₹ 20,000.
(d) Sold the goods bought on credit for ₹ 25,000.
(e) Purchased furniture worth ₹ 10,000 for office use and for ₹ 5,000 for domestic use.

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When furniture is bought by paying cash, account is credited.

The correct option is C FurnitureWhen furniture is bought paying money, cash which is an asset reduces. Hence, the cash account is credited.

The correct option is C Furniture
When furniture is bought paying money, cash which is an asset reduces. Hence, the cash account is credited.