K.

Veerendra Patil Faculty Transactions which are interconnected and have taken place simultaneously are recorded by means of a combined journal entry Combined entry is that where more than one accounts are debited or credited. For example, if amount is spent on the same day on salary , wages rent etc., a combined entry may be passed by debiting all the expenses accounts with their respective amount and crediting Cash Account with total amount spent. Illustration 3: Journalized the following transaction: 2006 July ,, 2,000 ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,,
,,

2 4 5 6 7 7 7 9 9 9 9 10 11 14 14 17
18

Commenced business with cash 4 Purchased furniture for cash Cash purchases Deposited with bank Bought of Patil Sold to Natarajan for cash Stationery purchased Bought Sail Sold to Mukhjerjee Rent for two years paid in advance Drawings by the proprietor for household expenses Goods taken out by the proprietor for domestic use Cash withdraw from the bank Sold to Mathur on Credit Purchase made, payment though the cheque Cash Received from Patil on account

Rs. 25,000 14,500 3,000 4,000 1,430 105 2,600 808 2,400 400 50 2,700 985 290 1,000 2,470

Cash paid to Salil after deduction of discount Rs.130 Cash received from Mathur in full settlement of his account 975 Mukherjee becomes insolvent. A divided of 50 paise in a rupee is 404

,, 864 ,, 378 ,, 510 ,, 5 ,, 17 ,, 115 ,, 1,200

20 20 24 24 24 26 26

received. Sold goods to Aggrawal Sold to Nayak Electricity bill paid Cartage paid in cash Repairs to scooter, payment not yet made Payment of cash for petrol Purchase of goods for cash

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K. Veerendra Patil Faculty ,, 1,250 ,, 17 ,, 40 ,, 110 ,, 220 ,, 180 ,, 100 ,, 5 ,, 125 ,, 200 ,, 26 27 28 31 31 31 31 31 31 31 31 Purchase of office equipment for cash Repairs bill in cash Aggarwal returns goods Depreciation in furniture Depreciation in Scooter Salary to clerk outstanding Adjustment for the months rent Bank charges for the month Interest on capital for the month Salary to be credited to proprietor

Salil agrees to take some defective goods purchased from him and immediately refunds the money. 70 Subhasha was carrying on business as a cloth delaer. On 1 st April ,2006 in his assets were.furniture and Office equipment Rs. 2500 Stock of coth, Rs, 25,000 Cash in hand 450, Bank balance Rs.8,500 amount due from Bittoo Rs.1,200 amount due from Gopan Rs. 1500 On that date he owed Rs. 2000 to Minoo and Rs 1,450 to Pappu. His trasaction during April 2006 were as follows: April 1 2 3 4 5 6 8 10 12 13 15 16 17 Sold cloth to Gifloo Purchased cloth from Amboo on credit Paid rent for April by cheque Cash purchase of cloth (paid by cheque) Cash sales Received cheque from Bittoo Allowed him discount Paid for stationery and postage Drawn cash fro private use Drawn cash from Bank for office Bittoos cheque returned dishonored by Bank which charges Rs. 5 for expenses Purchased goods on credit from minoo Sent cheque to Minoo in full settlement of amount due on April 1 Sent cheque to Pappu Sold goods on credit to Gopan Paid Telephone STD charges 500 2,000 300 800 450 1,180 20 50 250 1,500 2,500 1,950 1,450 1,800 80 Sampath Academy Bangalore

K. Veerendra Patil Faculty Cash Sales 300 Paid for advertising 350 20 Paid Income tax 1,900 Received letter from Pappy saying that he has not received the cheque: cancelled that cheque and paid cash 21 Bittoo becomes insolvent ; only 50% received from his estate 22 Cash purchases 900 24 Purchased filing cabinet and paid by cheque 500 27 Purchased Government Securities 3000 31 Paid salaries for the month 800 Journalise the transactions. Note that cheques received are immediately Sent to the Bank. 18

Journalise the Transactions given below in the books of Kohil 2006 April 1. 2 3 4 5 6 7 8 9 10 11 12 13 Kohil starts business with Rs. 25,000. Kohil opens account with bank and deposits Rs. 18,000 Kohil purchase furniture, Rs. 1,850, and typewriter, Rs, 5,500/. Payment made by cheque. Goods purchased from M/s Rao and Murty on credit Rs. 5,600 Goods purchased M/s Khan & Singh for cash Rs. 1,100 Goods sold on credit to M/s Mohan Lal & Co., Rs. 1,500 Goods sold on crdit ot M/s Basu&Co., Rs. 2,800 Paid for office stationery, Rs. 250 Paid rent for April Rs. 200 Insalled neon sign at a cost of Rs 1,000 Paid for postage stamps Rs. 10. Received cash from M/s Mohanlal &Co., Rs. 1,470; allowed them discount, Rs. 30. Issued cheque for Rs. 5,500 in full settlemt (i.e., nothing more is due to them) to M/s Rao&Murty. Deposited Rs. 1,200 in bank Received bill fro two table fans, Rs. 300, from M/s Electrician Bros. Sampath Academy Bangalore

K. Veerendra Patil Faculty 15 16 One table fan stolen Paid insurance premium Rs. 450 by cheque

Note: The two columns of the Journals should be totaled to ensure that the amounts entered in the debit column and those entered in the credit column are not different. Journalise the transactions given below in the books of Ram Nath. February 2006 1 2 3 3 5 7 750 9 11 Agencies 12 He opened a bank account with Rs. 10,000 Sampath Academy Bangalore Ram Nath started business with a capital of Rs. 30,000 He purchased a portable typewriter for Rs 3,540 He bought goods on credit form M/s Kalash Agencies for Rs. 1,000 He purchased postage stamps worth Rs. 5 He sold goods for cash, Rs. 270 He sold goods on credit to Messrs Asha Stores from Rs. Goods worth Rs. 100 being defective, were returned to Messrs Kalash Agencies Cash amount to Ts. 800 was paid to Messrs Kalash

K. Veerendra Patil Faculty 13 13 15 20 21 22 made 28 28 28 28 28 by cheque Cash Sales Rs. 500 Paid rent for February Rs. 120 Paid salary of clerk Rs. 75 Paid electric bill Rs. 35 He deposited in bank Rs. 3000. He received cash from Messrs Asha Stores, Rs. 650 Asha Stores returned goods worth Rs. 100 Paid insurance premium by cheque Rs. 325 Office stationery was purchased for Rs. 175 One electric fan was purchased for Rs. 790 Goods worth Rs. 950 were purchased and payment was

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