Simple Compound (Combined) Journal Entries

Journalise the following transactions by combining the related transactions into a compound entry, post them into the ledger and prepare a trial balance

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

Journal in the books of Mr. Ajit
for the period from July 1^st, _5 to July 10^th, _5
Date	V/R No.	Particulars		L/F	Amount (Dr)	Amount (Cr)
July 1^st	–	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
July 1^st	–	[Being the amount of assets received from Mr. Ajit, the proprietor towards his capital contribution]		– – – –	3,00,000 1,00,000 50,000	4,50,000
3^rd	–	Buildings a/c To Cash a/c	Dr	– –	1,00,000	1,00,000
3^rd	–	[Being the amount paid for purchase of Building vide voucher no:___ dated:__]		– –	1,00,000	1,00,000
3^rd	–	Purchases a/c To Cash a/c To Sujit a/c	Dr	– – –	55,000	30,000 25,000
3^rd	–	[Being the value of stock purchased for cash and on credit from Mr. Sujit vide voucher no:___ dated:__]		– – –	55,000	30,000 25,000
5^th	–	Cash a/c Mahendra a/c To Sales a/c	Dr Dr	– – –	49,500 40,650	90,105
5^th	–	[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:__]		– – –	49,500 40,650	90,105
6^th	–	Bank a/c To Cash a/c	Dr	– –	32,000	32,000
6^th	–	[Being the amount of cash deposited into bank]		– –	32,000	32,000
8^th	–	Cash a/c Drawings a/c To Bank a/c	Dr Dr	– – –	15,000 5,000	20,000
8^th	–	[Being the amount of cash withdrawn from bank for office use and personal use vide cheque no:___ dated:__]		– – –	15,000 5,000	20,000
10^th	–	Freight a/c Cartage a/c Salaries a/c To Cash a/c	Dr Dr Dr	– – – –	1,200 2,000 14,600	17,800
10^th	–	[Being the amount of cash paid for frieght, cartage and salaries vide voucher no:___ dated:__]		– – – –	1,200 2,000 14,600	17,800

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

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

Journal in the books of Mr. Surendra
for the period from March 1^st _5 to March 31^th _5
Date	V/R No.	Particulars		L/F	Amount (Dr)	Amount (Cr)
Mar 1^st	–	Cash a/c Bank a/c To Capital a/c	Dr Dr	– – –	60,000 20,000	80,000
Mar 1^st	–	[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 __]		– – –	60,000 20,000	80,000
5^th	–	Purchases a/c To Ram Chand a/c To Ramesh & Co. a/c	Dr	– – –	22,000	12,000 10,000
5^th	–	[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:__]		– – –	22,000	12,000 10,000
7^th	–	Rajesh a/c Mahesh Chand a/c To Sales a/c	Dr Dr	– – –	8,000 10,000	18,000
7^th	–	[Being the value of stock sold on credit to Mr. Rajesh vide invoice no:___ dated:__ & Mr. Mahendra Chandra vide invoice no:___ dated:__]		– – –	8,000 10,000	18,000
10^th	–	Bank a/c Discount Allowed a/c To Rajesh a/c	Dr Dr	– – –	6,800 200	7,000
10^th	–	[Being the amount received from Mr. Rajesh after allowing a discount by cheque no:___ dated:____]		– – –	6,800 200	7,000
12^th	–	Bank a/c To Cash a/c	Dr	– –	8,000	8,000
12^th	–	[Being the amount of cash deposited into bank]		– –	8,000	8,000
14^th	–	Ramesh & Co. a/c To Cash a/c To Discount Received a/c	Dr	– – –	9,200	9,000 200
14^th	–	[Being the amount of cash paid to M/s Ramesh & Co. after receiving a discount vide voucher no:___ dated:__]		– – –	9,200	9,000 200
17^th	–	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
17^th	–	[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:__]		– – – –	7,200 2,600 6,500	16,300
21^st	–	Bank a/c To Jagadish a/c	Dr	– –	5,200	5,200
21^st	–	[Being the amount received from Jagdish on account by cheque no:____ dated:____]		– –	5,200	5,200
25^th	–	Ram Chand a/c To Bank a/c To Discount Received a/c	Dr	– – –	7,000	6,800 200
25^th	–	[Being the amount of cash paid to M/s Ram Chand after receiving a discount vide Cheque no:___ dated:__]		– – –	7,000	6,800 200
26^th	–	Bank a/c Discount Allowed a/c To Jagadish a/c	Dr Dr	– – –	1,800 200	2,000
26^th	–	[Being the amount received from Mr. Jagadish after allowing a discount by cheque no:___ dated:____]		– – –	1,800 200	2,000
27^th	–	Sales Returns a/c To Mahesh Chand a/c	Dr	– –	2,000	2,000
27^th	–	[Being the value of stock returned by Mr. Mahesh Chand vide credit note no:___ dated:__]		– –	2,000	2,000
28^th	–	Purchases a/c To Cash a/c	Dr	– –	15,000	15,000
28^th	–	[Being the value of stock purchased for cash vide bill no:___ dated:__]		– –	15,000	15,000
31^st	–	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
31^st	–	[Being the amount of cash paid for frieght, cartage and salaries vide voucher no:___ dated:__]		– – – –	1,000 5,000 12,500	18,500

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

Simple Compound (Combined) Journal Entries - Problems and Solutions

Problem - 1

Solution

General Ledger
[Books of Mr. Ajith]

Trial Balance
[Modern Method]

Problem - 2

Solution

General Ledger
[Books of Mr.Surendra]

Trial Balance
[Modern Method]

Simple Compound (Combined) Journal Entries - Problems and Solutions

Problem - 1

Solution

General Ledger [Books of Mr. Ajith]

Trial Balance [Modern Method]

Problem - 2

Solution

General Ledger [Books of Mr.Surendra]

Trial Balance [Modern Method]

General Ledger
[Books of Mr. Ajith]

Trial Balance
[Modern Method]

General Ledger
[Books of Mr.Surendra]

Trial Balance
[Modern Method]