Posting of Compound Journal Entries

Posting of Compound Journal Entries :

Compound or Combined Journal Entry is one where more than one transactions are recorded by passing only one journal entry instead of passing several journal entries. Since every debit must have the corresponding equal amount of credit, special care must be taken in posting the compound journal entry, where there may be only one debit aspect but many corresponding credit aspects of equal value or vise versa. The posting of such transactions is done in the same way as already explained.

Illustration  : Jan. 12, 2003, Cash sales Rs.10,000, Cash received from Kannan Rs.5,000 and commission earned Rs.2,500.

Journal

Date	Particulars	LF	Debit Rs.	Credit Rs.
2003	Cash A/c.                                            Dr		17,500
Jan 12	To Sales A/c.				10,000
	To Kannan’s A/c.				5,000
	To Commission A/c.				2,500
	(Received cash for sale, from
	Kannan and as commission)

 

Solution :

Ledger
Cash Account
Dr.                                                                                                                                                                                                   Cr.

Date	Particulars	J.F.	Amount Rs.	Date	articulars	J.F.	Amount Rs.
2003 Jan 12	To Sales A/c To Kannan’s A/c To Commission A/c		10,000
			5,000 _________ 2,500

 

Sales Account

Dr.                                                                                                                                                                                                        C r.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F	Amount Rs.
				2003
				Jan 12	By Cash A/c		10,000

 

Kannan’s Account
Dr.                                                                                                                                                                                                        Cr.

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F	Amount  Rs.
				2003
				Jan 12	By Cash A/c		5,000

Commission Account

Dr.                                                                                                                                                                                                        Cr.

 

Date	Particulars	J.F	Amount Rs.	Date	Particulars	J.F	Amount  Rs.
				2003
				Jan 12	By Cash A/c		2,500

 

Note: In the above transactions, there is only one debit aspect namely cash account and three credit aspects. Therefore, while posting in the cash account, the names of three credit aspects are entered in the cash account on the debit side, thus having a total of Rs.17,500 which is equal to the amount in the debit column of the journal.

The cash account is written on the credit side of the three accounts, namely, Sales, Kannan and Commission received, as it acts as an opposite and corresponding accounts for Sales Rs.10,000, Kannan Rs.5,000 and Commission Rs.2,500 respectively which are equal to the amount in the credit column of the journal.