Question
Prepare a Compound Entry with the help of imaginary figures and show its posting.
✓
Answer
When in a Journal entry, two or more accounts are debited and only one account is credited or vice versa, the entry is termed as compound journal entry. In case of posting of a compound journal entry, posting has to be made in all the accounts whether debited or credited in the entry. For example, if on 10th April 2017, cash received from Gopal & Co. is ₹ 14,800 and discount allowed to them is ₹ 200, the compound entry and the Ledger Accounts will be as follows:
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Similar questions
Prepare an Accounting Equation from the following:
- Started business with cash ₹ 1,00,000.
- Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000.
- Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%
What do you mean by posting?
What do you mean by Accounting Concepts?
Do you think that the Convention of conservatism results in creation of secret reserves?
Pass Journal entries of M/s Bhanu Traders, Delhi from the following transactions. Post them to the Ledger:
|
2019
|
|
₹
|
|
April 1
|
Commenced business with cash
|
1,50,000
|
|
April 2
|
Opened a bank account with PNB
|
50,000
|
|
April 3
|
Purchased furniture
|
20,000
|
|
April 7
|
Bought goods for cash from M/s. Rupa Traders, Delhi
|
30,000
|
|
April 8
|
Purchased goods from M/s. Hema Traders, Chandigarh
|
42,000
|
|
April 10
|
Cash sales
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30,000
|
|
April 14
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Sold goods on credit to M/s. Gupta Traders, Kolkata
|
12,000
|
|
April 16
|
Rent paid
|
4,000
|
|
April 18
|
Paid Electricity expenses
|
1,000
|
|
April 20
|
Received cash from Gupta Traders
|
12,000
|
|
April 22
|
Goods returned to Hema Traders
|
2,000
|
|
April 23
|
Cash paid to Hema Traders
|
40,000
|
|
April 25
|
Bought postage stamps
|
100
|
|
April 30
|
Paid salary to Mohan
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4,000
|
What are Accounting Standards? Name any two Accounting Standards.
Explain the procedure of balancing the personal accounts.
What are Adjustment Entries?
Why the full cost of an asset is not treated as an expense in the year of its purchase?
Following balances appeared in the books of Radhika Traders as on 1st April, 2017:
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors; ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000.
In April, 2017, the following transaction took place:
Pass Journal entries for the above transactions.
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors; ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000.
In April, 2017, the following transaction took place:
|
2017
|
|
₹
|
|
April 2
|
Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
|
|
|
April 3
|
Received a draft from Mohan in full settlement and deposited it into Bank
|
|
|
April 5
|
Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.
|
9,750
|
|
April 8
|
Sold goods and received a cheque
|
25,000
|
|
April 10
|
Deposited the above cheque into Bank
|
12,000
|
|
April 12
|
Sohan deposited in our Bank A/c
|
4,000
|
|
April 16
|
Paid Income Tax by Cheque
|
5,600
|
| April 20 | Received a cheque from Sohan and sent to Bank | 7,800 |
| Discount allowed | 200 | |
|
April 21
|
Withdrew from Bank−for office
|
2,000
|
|
for private use
|
4,000
|
|
|
April 23
|
Sent a cheque to X in full settlement of his A/c
|
4,900
|
|
April 27
|
Cheque of Sohan returned by the bank as dishonoured.
|
|
|
April 28
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Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque
|
|
|
April 30
|
Bank allowed Interest
|
350
|
|
Paid for Rent by cheque
|
1,500
|
|
|
Paid for traveling expenses by cheque
|
500
|