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, _5 to July 10th, _5
Date V/R
No.
Particulars L/F Amount
(Dr)
Amount
(Cr)
July 1st Cash a/c
Purchases 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]
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:__]
3rd Purchases 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:__]
5th Cash a/c
Mahendra a/c
To Sales a/c
Dr
Dr



49,500
40,650


90,105
[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:__]
6th Bank a/c
To Cash a/c
Dr


32,000
32,000
[Being the amount of cash deposited into bank]
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[Being the amount of cash withdrawn from bank for office use and personal use vide cheque no:___ dated:__]
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. Ajith]

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 Sales 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 Purchases a/c
By Bank a/c
By Freight a/c
By Cartage 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
tl 3,64,500 tl 3,64,500
11/07/_5 To Balance b/d 1,84,700
Purchases 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 Sujit a/c


1,00,000
30,000
25,000
10/07/_5 By Balance c/d 1,55,000
tl 1,55,000 tl 1,55,000
11/07/_5 To Balance b/d 1,55,000
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
tl 50,000 tl 50,000
11/07/_5 To Balance b/d 50,000
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
01/07/_5
01/07/_5
By Cash a/c
By Purchases a/c
By Furniture a/c


3,00,000
1,00,000
50,000
tl 4,50,000 tl 4,50,000
11/07/_5 By Balance b/d 4,50,000
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
tl 1,00,000 tl 1,00,000
11/07/_5 To Balance b/d 1,00,000
Sujit 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 Purchases a/c 25,000
tl 25,000 tl 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 Sales a/c 40,650 10/07/_5 By Balance c/d 40,650
tl 40,650 tl 40,650
11/07/_5 To Balance b/d 40,650
Sales a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
10/07/_5 To Balance c/d 90,150 05/07/_5
05/07/_5
By Cash a/c
By Mahendra a/c

49,500
40,650
tl 90,150 tl 90,150
11/07/_5 By Balance b/d 90,150
Bank a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
06/07/_5 To Cash a/c 32,000 08/07/_5
08/07/_5
10/07/_5
By Cash a/c
By Drawings a/c
By Balance c/d


15,000
5,000
12,000
tl 32,000 tl 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
tl 5,000 tl 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
tl 1,200 tl 1,200
11/07/_5 To Balance b/d 1,200
Cartage 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
tl 2,000 tl 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
tl 14,600 tl 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
Purchases a/c
Furniture a/c
Capital a/c
Buildings a/c
Sujit a/c
Mahendra a/c
Sales a/c
Bank a/c
Drawings a/c
Freight a/c
Cartage a/c
Salaries a/c












1,84,700
1,55,000
50,000

1,00,000

40,650

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



4,50,000

25,000

90,150




Total 5,65,150 5,65,150

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 _5 to March 31th _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 __]
5th Purchases 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:__]
7th Rajesh a/c
Mahesh Chand a/c
To Sales 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:__]
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:____]
12th Bank a/c
To Cash a/c
Dr


8,000
8,000
[Being the amount of cash deposited into bank]
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:__]
17th Jagadish a/c
Rajesh a/c
Mahesh Chand a/c
To Sales 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:__]
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:____]
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:__]
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:____]
27th Sales Returns 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:__]
28th Purchases a/c
To Cash a/c
Dr


15,000
15,000
[Being the value of stock purchased for cash vide bill no:___ dated:__]
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
14/03/_5
28/03/_5
31/03/_5
31/03/_5
31/03/_5
31/03/_5
By Bank a/c
By Ramesh & Co. a/c
By Purchases 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
5,000
12,500
9,500
tl 60,000 tl 60,000
1/04/_5 To Balance b/d 9,500
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 Jagadish a/c
To Jagadish 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
tl 41,800 tl 41,800
1/04/_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 01/03/_5
01/03/_5
By Cash a/c
By Bank a/c

60,000
20,000
tl 80,000 tl 80,000
1/04/_5 By Balance b/d 80,000
Purchases a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
05/03/_5
05/03/_5
28/03/_5
To Ram Chand a/c
To Ramesh & Co. a/c
To Cash a/c


12,000
10,000
15,000
31/03/_5 By Balance c/d 37,000
tl 37,000 tl 37,000
1/04/_5 To Balance b/d 37,000
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 Purchases a/c 12,000
tl 12,000 tl 12,000
1/04/_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 Purchases a/c 10,000
tl 10,000 tl 10,000
1/04/_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 Sales a/c
To Sales a/c

8,000
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
tl 10,600 tl 10,600
1/04/_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 Sales a/c
To Sales a/c

10,000
6,500
27/03/_5
31/03/_5
By Sales Returns a/c
By Balance c/d

2,000
14,500
tl 16,500 tl 16,500
1/04/_5 To Balance b/d 14,500
Sales a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
31/03/_5 To Balance c/d 34,300 07/03/_5
07/03/_5
17/03/_5
17/03/_5
17/03/_5
By Rajesh a/c
By Mahesh Chand a/c
By Jagadish a/c
By Rajesh a/c
By Mahesh Chand a/c




8,000
10,000
7,200
2,600
6,500
tl 34,300 tl 34,300
1/04/_5 By Balance b/d 34,300
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
tl 400 tl 400
1/04/_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
tl 400 tl 400
1/04/_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 Sales a/c 7,200 21/03/_5
26/03/_5
26/03/_5
By Bank a/c
By Bank a/c
By Discount Allowed a/c


5,200
1,800
200
tl 7,200 tl 7,200
Sales Returns a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
27/03/_5 To Mahesh Chand a/c 2,000 31/03/_5 By Balance c/d 2,000
tl 2,000 tl 2,000
1/04/_5 To Balance b/d 2,000
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
tl 1,000 tl 1,000
1/04/_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 5,000 31/03/_5 By Balance c/d 5,000
tl 5,000 tl 5,000
1/04/_5 To Balance b/d 5,000
Salaries a/c
Dr Cr
Date Particulars J/F Amount Date Particulars J/F Amount
31/03/_5 To Cash a/c 12,500 31/03/_5 By Balance c/d 12,500
tl 12,500 tl 12,500
1/04/_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
Purchases a/c
Ram Chand a/c
Ramesh & Co. a/c
Rajesh a/c
Mahesh Chand a/c
Sales a/c
Discount Allowed a/c
Discount Received a/c
Jagadish a/c
Sales Returns a/c
Wages a/c
Office Expenses a/c
Salaries a/c















9,500
35,000

37,000


3,600
14,500

400


2,000
1,000
5,000
12,500


80,000

5,000
800


34,300

400




Total 1,20,500 1,20,500