Simple Compound (Combined) Journal Entries :: Problems and Solutions

Problem : 1

Journalise the following transactions by combining the related transactions into a compound entry, post them into the ledger and prepare a trial balance
July 1st : Ajit started business by investing
Cash
Goods and
Furniture

3,00,000
1,00,000
50,000
3rd : Purchased building 1,00,000
3rd : Purchased goods for cash 30,000
3rd : Purchased goods on credit from Sujit 25,000
3rd : Sold goods for cash 25,500
5th : Sold goods for cash to Avtar 24,000
5th : Sold goods to Mahendra on credit 40,650
5th : Deposited cash into bank 32,000
6th : Withdrew from bank for office use 15,000
8th : Withdrew from bank for private use 5,000
10th : Paid freight 1,200
10th : Paid cartage 2,000
10th : Paid salary 14,600

Solution »

Journal in the books of Mr. Ajit for the period from July 1st, 20_5 to July 10th, 20_5
Date V/R
No.
Particulars L/F Amount
(Dr)
Amount
(Cr)
July 1st Cash a/c
Goods/Stock a/c
Furniture a/c
To Capital a/c
Dr
Dr
Dr



3,00,000
1,00,000
50,000



4,50,000
[Being the amount of assets received from Mr. Ajit, the proprietor towards his capital contribution.]
July 3rd Buildings a/c
To Cash a/c
Dr
1,00,000
1,00,000
[Being the amount paid for purchase of Building vide voucher no:___ dated:__ ]
July 3rd Goods/Stock a/c
To Cash a/c
To Sujit a/c
Dr

55,000
30,000
25,000
[Being the value of stock purchased for cash and on credit from Mr. Sujit vide voucher no:___ dated:__ ]
July 5th Cash a/c
Mahendra a/c
To Goods/Stock a/c
Dr
Dr


49,500
40,650


90,150
[Being the value of stock sold for cash 25,500 vide receipt no:__, to avatar for 24,000 vide receipt no:___ and on credit to Mr. Mahendra vide bill no:___ dated:__ ]
July 6th Bank a/c
To Cash a/c
Dr
32,000
32,000
[Being the amount of cash deposited into bank]
July 8th Cash a/c
Drawings a/c
To Bank a/c
Dr
Dr


15,000
5,000


20,000
[Being the amount of cash withdrawn from bank for office use and personal use vide cheque no:___ dated:__ ]
July 10th Freight a/c
Cartage a/c
Salaries a/c
To Cash a/c
Dr
Dr
Dr



1,200
2,000
14,600



17,800
[Being the amount of cash paid for frieght, cartage and salaries vide voucher no:___ dated:__ ]

General Ledger
[Books of Mr. Ajit]

Cash a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
01/07/_5
05/07/_5
08/07/_5
To Capital a/c
To Goods/Stock a/c
To Bank a/c


3,00,000
49,500
15,000
03/07/_5
03/07/_5
06/07/_5
10/07/_5
10/07/_5
10/07/_5
10/07/_5
By Buildings a/c
By Goods/Stock a/c
By Bank a/c
By Freight a/c
By Carriage a/c
By Salaries a/c
By Balance c/d






1,00,000
30,000
32,000
1,200
2,000
14,600
1,84,700
      3,64,500       3,64,500
11/07/_5 To Balance b/d 1,84,700        
Capital a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
10/07/_5 To Balance c/d 4,50,000 01/07/_5 By Cash a/c
By Goods/Stock a/c
By Furniture a/c


3,00,000
1,00,000
50,000
      4,50,000       4,50,000
        11/07/_5 By Balance b/d 4,50,000
Goods/Stock a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
01/07/_5
03/07/_5
03/07/_5
To Capital a/c
To Cash a/c
To Sujith a/c


1,00,000
30,000
25,000
05/10/_5
05/07/_5
10/07/_5
By Cash a/c
By Mahendra a/c
By Balance c/d


49,500
40,650
64,850
      1,55,000       1,55,000
11/07/_5 To Balance b/d 64,850        
Furniture a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
01/07/_5 To Capital a/c 50,000 10/07/_5 By Balance c/d 50,000
      50,000       50,000
11/07/_5 To Balance b/d 50,000        
Buildings a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
03/07/_5 To Cash a/c 1,00,000 10/07/_5 By Balance c/d 1,00,000
      1,00,000       1,00,000
11/07/_5 To Balance b/d 1,00,000        
Sujith a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
10/07/_5 To Balance c/d 25,000 03/07/_5 By Goods/Stock a/c 25,000
      25,000       25,000
        11/07/_5 By Balance b/d 25,000
Mahendra a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
05/07/_5 To Goods/Stock a/c 40,650 10/07/_5 By Balance c/d 40,650
      40,650       40,650
11/07/_5 To Balance b/d 40,650        
Bank a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
05/07/_5 To Cash a/c 32,000 08/07/_5
08/07/_5
31/07/_5
By Cash a/c
By Drawings a/c
By Balance c/d


15,000
5,000
12,000
      32,000       32,000
11/07/_5 To Balance b/d 12,000        
Drawings a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
08/07/_5 To Bank a/c 5,000 10/07/_5 By Balance c/d 5,000
      5,000       5,000
11/07/_5 To Balance b/d 5,000        
Freight a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
10/07/_5 To Cash a/c 1,200 10/07/_5 By Balance c/d 1,200
      1,200       1,200
11/07/_5 To Balance b/d 1,200        
Carriage a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
10/07/_5 To Cash a/c 2,000 10/07/_5 By Balance c/d 2,000
      2,000       2,000
11/07/_5 To Balance b/d 2,000        
Salaries a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
10/07/_5 To Cash a/c 14,600 10/07/_5 By Balance c/d 14,600
      14,600       14,600
11/07/_5 To Balance b/d 14,600        

Trial Balance
[Modern Method]

Trial Balance of Mr. Ajith as on 11/07/_5
Particulars L/F Amount
(Dr)
Amount
(Cr)
Cash a/c
Capital a/c
Goods/Stock a/c
Furniture a/c
Buildings a/c
Sujit a/c
Mahendra a/c
Bank a/c
Drawings a/c
Freight a/c
Carriage a/c
Salaries a/c










1,84,700

64,850
50,000
1,00,000

40,650
12,000
5,000
1,200
2,000
14,600

4,50,000



25,000





Total   4,75,000 4,75,000

Problem : 2

Surendra commenced business on 1st March, 20_5. His transactions for the month are given below. Record them in the journal, post into the ledger and prepare a trial balance at the end of the month.

Mar 1st

:

Started business with
out of which paid into bank

80,000
20,000
5th : Bought goods of Ram Chand 12,000
5th : Bought goods from Ramesh & Co. 10,000
7th : Sold goods to Rajesh 8,000
7th : Sold goods to Mahesh Chand 10,000
10th : Received cheque from Rajesh
discount allowed
6,800
200
12th : Paid into bank 8,000
14th : Paid to Ramesh & Co.
discount received
9,000
200
17th : Sold goods to Jagdish 7,200
17th : Sold goods to Rajesh 2,600
17th : Sold goods to Mahesh Chand 6,500
21st : Payment received by cheque from Jagdish 5,200
25th : Paid to Ram Chand by cheque
discount
6,800
200
26th : Received cheque from Jagadish Chand in full settlement of his account 1,800
27th : Mahesh Chand returned goods not up to the sample 2,000
28th : Bought goods for cash 15,000
31st : Paid wages in cash 1,000
31st : Paid office expenses in cash 5,000
31st : Paid salaries for the month 12,500

Solution »

Journal in the books of Mr. Surendra for the period from March 1st 20_5 to March 31st 20_5
Date V/R
No.
Particulars L/F Amount
(Dr)
Amount
(Cr)
Mar 1st Cash a/c
Bank a/c
To Capital a/c
Dr
Dr


60,000
20,000


80,000
[Being the amount brought in by Mr. Surendra, the proprietor, as his capital contribution in cash vide receipt no:___ dated:__ and a cheque no. __ dated __.]
Mar 5th Goods/Stock a/c
To Ram Chand a/c
To Ramesh & Co. a/c
Dr

22,000
12,000
10,000
[Being the value of stock purchased on credit from Mr. Ram Chand & Co.vide bill no:___ dated:__ and M/s Ramesh & Co.vide bill no:___ dated:__]
Mar 7th Rajesh a/c
Mahesh Chand a/c
To Goods/Stock a/c
Dr
Dr


8,000
10,000


18,000
[Being the value of stock sold on credit to Mr. Rajesh vide invoice no:___ dated:__ & Mr. Mahendra Chandra vide invoice no:___ dated:__]
Mar 10th Bank a/c
Discount Allowed a/c
To Rajesh a/c
Dr
Dr


6,800
200


7,000
[Being the amount received from Mr. Rajesh after allowing a discount by cheque no:___ dated:____ ]
Mar 12th Bank a/c
To Cash a/c
Dr
8,000
8,000
[Being the amount of cash deposited into bank]
Mar 14th Ramesh & Co. a/c
To Cash a/c
To Discount Received a/c
Dr

9,200
9,000
200
[Being the amount of cash paid to M/s Ramesh & Co. after receiving a discount vide voucher no:___ dated:__ ]
Mar 17th Jagdish a/c
Rajesh a/c
Mahesh Chand a/c
To Goods/Stock a/c
Dr
Dr
Dr



7,200
2,600
6,500



16,300
[Being the value of stock sold on credit to Mr Jagdish vide bill no:___ dated:__, Mr. Rajesh vide bill no:___ dated:__ & Mr. Mahendra Chandra vide bill no:___ dated:__]
Mar 21st Bank a/c
To Jagadish a/c
Dr
5,200
5,200
[Being the amount received from Jagdish on account by cheque no:____ dated:____ ]
Mar 25th Ram Chand a/c
To Bank a/c
To Discount Received a/c
Dr

7,000
6,800
200
[Being the amount of cash paid to M/s Ram Chand after receiving a discount vide Cheque no:___ dated:__ ]
Mar 26th Bank a/c
Discount Allowed a/c
To Jagadish a/c
Dr
Dr


1,800
200


2,000
[Being the amount received from Mr. Jagadish after allowing a discount by cheque no:___ dated:____ ]
Mar 27th Goods/Stock a/c
To Mahesh Chand a/c
Dr
2,000
2,000
[Being the value of stock returned by Mr. Mahesh Chand vide credit note no:___ dated:__ ]
Mar 28th Goods/Stock a/c
To Cash a/c
Dr
15,000
15,000
[Being the value of stock purchased for cash vide bill no:___ dated:__ ]
Mar 31st Wages a/c
Office Expenses a/c
Salaries a/c
To Cash a/c
Dr
Dr
Dr



1,000
5,000
12,500



18,500
[Being the amount of cash paid for frieght, cartage and salaries vide voucher no:___ dated:__ ]

General Ledger
[Books of Mr. Surendra]

Cash a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
01/03/_5 To Capital a/c 60,000 12/03/_5 By Bank a/c
By Cash a/c
By Goods/Stock a/c
By Wages a/c
By Office Expenses a/c
By Salaries a/c
By Balance c/d





8,000
9,000
15,000
1,000
1,500
12,500
13,000
      60,000       60,000
01/04/_5 To Balance b/d 60,000        
Bank a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
01/03/_5
10/03/_5
12/03/_5
21/03/_5
26/03/_5
To Capital a/c
To Rajesh a/c
To Cash a/c
To Jagdish a/c
To Jagdish a/c




20,000
6,800
8,000
5,200
1,800
25/03/_5
31/03/_5
By Ram Chand a/c
By Balance c/d

6,800
35,000
      41,800       41,800
01/04/_5 To Balance b/d 35,000        
Capital a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
31/03/_5 To Balance c/d 80,000 01/07/_5
01/03/_5
By Cash a/c
By Bank a/c

60,000
20,000
      80,000       80,000
        01/04/_5 By Balance b/d 80,000
Goods/Stock a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
05/03/_5
05/03/_5
27/03/_5
28/03/_5
To Ram Chand a/c
To Ramesh & Co a/c
To Mahesh Chand a/c
To Cash a/c



12,000
10,000
2,000
15,000
07/03/_5
07/03/_5
17/03/_5
17/03/_5
17/03/_5
31/03/_5
By Rajesh a/c
By Mahesh Chand a/c
By Jagdish a/c
By Rajesh a/c
By Mahesh Chand a/c
By Balance c/d





8,000
10,000
7,200
2,600
6,500
4,700
      37,000       37,000
01/04/_5 To Balance b/d 4,700        
Ram Chand a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
25/03/_5
25/03/_5
31/03/_5
To Bank a/c
To Discount Received a/c
To Balance c/d


6,800
200
5,000
05/03/_5 By Goods/Stock a/c 12,000
      12,000       12,000
        01/04/_5 By Balance b/d 5,000
Ramesh & Co., a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
14/03/_5
14/03/_5
31/03/_5
To Cash a/c
To Discount Received a/c
To Balance c/d


9,000
200
800
05/03/_5 By Goods/Stock a/c 10,000
      10,000       10,000
        01/04/_5 By Balance b/d 800
Rajesh a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
07/03/_5
17/03/_5
To Goods/Stock a/c
To Goods/Stock a/c

25,000
2,600
10/03/_5
10/03/_5
31/03/_5
By Bank a/c
By Discount Allowed a/c
By Balance c/d


6,800
200
3,600
      10,600       10,600
01/04/_5 To Balance b/d 3,600        
Mahesh Chand a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
07/03/_5
17/03/_5
To Goods/Stock a/c
To Goods/Stock a/c

10,000
6,500
27/03/_5
31/03/_5
By Goods/Stock a/c
By Balance c/d

2,000
14,500
      16,500       16,500
01/04/_5 To Balance b/d 14,500        
Discount Allowed a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
10/03/_5
26/03/_5
To Rajesh a/c
To Jagadish a/c

200
200
31/03/_5 By Balance c/d 400
      400       400
01/04/_5 To Balance b/d 400        
Discount Received a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
31/03/_5 To Balance c/d 400 14/03/_5
25/03/_5
By Ramesh & co. a/c
By Ram Chand a/c

200
200
      400       400
        01/04/_5 By Balance b/d 400
Jagadish a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
17/03/_5 To Goods/Stock a/c 7,200 21/03/_5
26/03/_5
26/03/_5
By Bank a/c
Bank a/c
By Discount Allowed a/c


5,200
1,800
200
      7,200       7,200
               
Wages a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
31/03/_5 To Cash a/c 1,000 31/03/_5 By Balance c/d 1,000
      1,000       1,000
01/04/_5 To Balance b/d 1,000        
Office Expenses a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
31/03/_5 To Cash a/c 1,500 31/03/_5 By Balance c/d 1,500
      1,500       1,500
01/04/_5 To Balance b/d 1,500        
Salaries a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
25/03/_5
To Cash a/c 12,500 31/03/_5 By Balance c/d 12,500
      12,500       12,500
01/04/_5 To Balance b/d 12,500        

Trial Balance
[Modern Method]

Trial Balance of Mr. Surendra as on 31/03/_5
Particulars L/F Amount
(Dr)
Amount
(Cr)
Cash a/c
Bank a/c
Capital a/c
Goods/Stock a/c
Ram Chand a/c
Ramesh & Co. a/c
Rajesh a/c
Mahesh Chand a/c
Discount Allowed a/c
Discount Received a/c
Jagdish a/c
Wages a/c
Office Expenses a/c
Salaries a/c













13,000
35,000

4,700


3,600
14,500
400


1,000
1,500
12,500


80,000

5,000
800



400



Total   86,200 86,200