Compound Journal Entry

When two or more transactions of similar nature take place on the same date, such transactions can be entered in the journal by means of a combined journal entry is called Compound Journal Entry. The only precaution is that the total debits should be equal to total credits.

Example 17: June 1, 2004 – Anju contributed capital Rs. 50,000
Manju contributed capital Rs. 70,000

Solution:

Journal

Date	Particulars	L.F	Debit Rs.                             P.		Credit Rs.                                  P.
2004	Cash A/c                                                      Dr.		1,20,000	—
June 1	To Anju’s Capital A/c				50,000	—
	To Manju’s Capital A/c				70,000	—
	(The amount invested by Anju & Manju)

Example 18:

July 1, 2004 —                               Ajay contributed capital — Cash Rs. 90,000

Furniture                     Rs. 20,000

Vijay contributed capital— Cash Rs. 50,000

tock Rs.                                 70,000

Solution:                              

Journal

Date	Particulars	L.F	Debit Rs.                         P.		Credit Rs.                                   P.
2004	Cash A/c                                                      Dr.		1,40,000	—
July 1	Stock A/c                                                     Dr.		70,000	—
	Furniture A/c                                              Dr.		20,000	—
	To Aj ay’s Capital A/c				1,10,000	—
	To Vijay’s Capital A/c				1,20,000	—
	(Capital introduced by Ajai & Vijay)

Example 19:

July 13, 2003 — Received cash Rs.24,700 from Shanthi in full settlement of her account of Rs.25,000.

Here cash received is Rs.24,700 in full settlement of Rs.25,000 so the difference Rs.300 is discount allowed.

Solution:                               Journal

 

			Debit		Credit
Date	Particulars	L.F
			Rs.                                         P.		Rs.                                             P.
2003	Cash A/c                                                      Dr.		24,700	—
July 13	Discount allowed A/c                            1k		300	—
	To Shanthi’s A/c				25,000	—
	(Shanthi settled her account)

 

Example 20:

July 14, 2003 — Paid cash to Thenmozhi Rs.14,500, in full settlement of her account of Rs.15,000.

Here cash paid Rs.14,500 in settlement of Rs.15,000 so the difference Rs. 500 is discount received

Solution:                              

Journal

			Debit		Credit
Date	Particulars	L.F
			Rs.                                       P.		Rs.                                             P.
2003	Thenmozhi A/c                                           Dr.		15,000	—
July 14	To Cash A/c				14,500	—
	To Discount received A/c.				500	—
	(Settled Thenmozhi’s account)