Purchased additional office furniture worth $13,750 (GST inclusive), half of the full amount was settled with cash and the remaining 50% was financed through a loan. Assume that the loan amount is paid directly to the seller.

General Journal Entry: Knowing Office Furniture 12,599 GST paid 1,250 Cash 6,875 Bank Loan 6875

 

 BUT what do your record this as on the General ledger?

 

EG. guessing Cash $6875 would be recorded under cash as office furniture. and guess Bank loan to be 6875 as office furniture .. but how do you show Office furiture and GST paid ? would this just go into the office furniture section?