Youo can first pass a regular entry i.e entry for 10 chairs
First entry: Furniture Stock A/c debit (1000*10) TO Cash or Creditors A/c (1000*10) Narration Stock account is debited as by purchasing materials you stock increases or since its a real account you need to debit what comes in and credit what goes out(cash)
Second entry Capital A/c Debit (1000*1) To Furniture Stock A/c(1000*1) Narration Since your capital gets reduced when you are withdrawing from your business the same has to be debited. Stock a/c being a real a/c gets credited as the stock is going out and thereby reducing your stock.
Regards, Santosh G Kalburgi Cost Accountant, Bangalore 9742022309
CAclubindia
