BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Is buying furniture debit or credit? Buying Furniture will be an asset to any business or for personal use. Per the accounting rules, we need to debit the assets to increase it. Therefore, buying Furniture will record on the debit side of the journal entry.

Detailed explanation-2: -A purchase credit journal entry is recorded by a business in their purchases journal on the date a business purchases goods or services on credit from a third party. The business will debit the purchases account and credit the accounts payable account in the business’s Purchases journal.

Detailed explanation-3: -Explanation: Upon furniture purchase, the value of an asset is increased and according to the Rules of Debit and Credit, an increase in an asset A/c is debited . Further, cash is reduced according to the Rules of Debit and Credit. So Cash A/c would be credited.

Detailed explanation-4: -You debit your furniture account, because value is flowing into it (a desk). In double-entry accounting, every debit (inflow) always has a corresponding credit (outflow). So we record them together in one entry.