Bonga started an entity on 1 March 20.23. T During the first month the entity had the following transactions:

Question

March 20.23

2. Acquired R40 000 furniture on credit from K Koekemoer.

Account Dr

Account Cr

Amount Dr

Amount Cr

3.




R40 000

R40 000

Answer 1

Based on the information you've provided, here's how to record the transaction of acquiring furniture on credit in a basic accounting journal format for March 2023.

Journal Entry for March 2023

| Date | Account Title | Debit (Dr) | Credit (Cr) | |------------|------------------------------|-------------|--------------| | 2 March 20.23 | Furniture (Asset) | R40,000 | | | | Accounts Payable (Liability) | | R40,000 |

Explanation:

1. Furniture (Asset): This account is debited (increased) by R40,000 because the entity has acquired an asset (furniture).

2. Accounts Payable (Liability): This account is credited (increased) by R40,000 because the entity now has a liability to pay K Koekemoer for the furniture, indicating that it was acquired on credit.

Make sure to adjust the accounts accordingly as you proceed with further transactions within the accounting period. If you have more transactions or need assistance with further accounting practices, feel free to ask!