1. Purchased furniture 2. Sold machinery 3. Brought in for capital 4. Purchased goods from Sunil 5. Sold goods to Anil 6. Salary paid 7. Commission received 8. Paid to Sunil 9. Received from Anil Transaction Debit and Credit Reason for debit and credit 1. Purchased furniture Furniture Dr. Furniture increases Cash Cr. Asset decreases 2.Sold machinery Cash Dr. Asset increases Machinery Cr. Machinery decreases 3. Cash brought in Cash Dr. Asset increases for capital Capital (owner) Cr. Capital increases 4. Purchased goods Purchase (goods) Dr. Increase expenses from Sunil Sunil Cr. Increase liability 5. Sold goods to Anil Anil Dr. Increase asset Sales (Goods) Cr. Increase income 6. Paid salary Salary Dr. Increase expense Cash Cr. Decrease asset 7. Received Cash Dr. Asset increases commission Commission Cr. Income increases 8. Paid to Sunil Sunil Dr. Decrease liability Cash Cr. Decrease asset 9. Received from Anil Cash Dr. Increase asset Anil Cr. Decrease asset Q2 Mlustration 5 Give journal entries for the following transactions. 2004 Jan. 21 Purchased furniture for cash 22 Purchased goods for cash 23 Sold machinery for cash 25 Sold goods for cash 27 Paid salary 28 Received commission 29 Paid to Kumar 31 Received cash from Somu * 3.000 * 4,200 * 6,000 34,500 * 600 400 500 * 1.000