00:01
In this question, it is given that goods costing rupees 4000 were used to make furniture and wages of rupees 1000 has been paid to carpenter.
00:27
So, we should write the journal entry.
00:37
So, let us take the first case.
00:38
Here, goods are used to make furniture.
00:55
Goods which is represented as stock which is an asset, it is decreased and we are making furniture.
01:07
It is also an asset and it is increased.
01:12
So, now we can prepare the journal entry, date, account, title, debit and credit.
01:25
Here, the furniture is increasing and it should be debited and stock is decreased, another asset is decreased, it should be credited.
01:39
So, furniture account debtor which is 4000 should be debited and to stock account because the goods are reducing.
01:55
So, it decreases the value of asset and thus it is credited.
01:59
So, being goods used to make furniture is recorded.
02:21
Let us take the second case...