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EXAMPLE No.6 Compound Double Entry

Whenever two or more transactions complete on the same date and one or more accounts are common (either on Debit or Credit side) in all transactions, it is good to pass a compound double entry instead of passing two or more entries


   January 3.Deadman started with cash $50,000, furniture costing $10,000 and machinery $50,000
   January 5.Paid rent for firm's building $6000, salaries $20,000, office supplies $1000
   January 22.Sold goods on credit to Gman $5000,  to Johnny Bravo $2000 and to Deadman 10,000
   January 25.$5000 and $6000 were payable to B Berry and Johnny bravo and payments were made
   January 26.Bought goods and machinery for cash $5000 and $40,000 respectively
   January 28.Received commission = $600 and dividend = $9000
   




  DATE  DESCRIPTION FOLIO DEBIT CREDIT





   Jan. 3

   Cash
   Furniture
   Machinery

                    Capital

   $50,000
   $10,000
   $50,000

   
  

   
   
   $110,000





   Jan. 5

   Rent expenses
   Salaries expenses
   Office supplies

                    Cash

   $6000
   $20,000
   $1000

   
   

   
   
   $27,000





   Jan. 22

   Debtor (Gman)
   Debtor (Johnny Bravo)
   Debtor (Deadman)

                    Sales

   $5000
   $2000
   $10,000

   
   

   

   $17,000





   Jan. 25

   Creditor (B Berry)
   Creditor (Johnny bravo)

                    Cash

   $5000
   $6000

   
   

  
   $11,000





   Jan. 26

   Purchases
   Machinery

                    Cash

   $5000
   $40,000

   
   

   
   $45,000





   Jan. 28

   Cash

                    Commisssion income
                    Dividend

   $9600

   
   

   $600
   $9000