Journal Entry for Use of Goods in Business

Sometimes goods of a business available for sale are used in the business itself. If this happens, those goods are considered assets by the business.

Journal Entry: 

Example 1: A electrical goods dealer uses fans for the business worth ₹1,000.

Solution: 

Example 2: A furniture merchant uses furniture for the business worth ₹5,000.

Solution:

Related Articles:

• Journal Entry for Expenditure on Assets
• Journal Entry for Expenses on Purchase of Goods
• Journal Entries under GST