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Sometimes a particular transaction involves more than two accounts. Many transactions are related to specific account on a particular date. There may be certain transactions of the same nature on a certain date. In these cases, we prefer to pass only one entry instead of passing two or more entries. Such entries can be passed in any of the following three ways: 

            (a) By debiting one account and crediting two or more accounts.

            (b) By crediting one account and debiting two or more accounts.

(c) By debiting two or more accounts and crediting two or more accounts. 

            Illustration 1. Pass necessary Journal entries in the following cases: 

(i) Amount

Received from James                                                  $ 1,980

(i)Discount allowed                                                    $ 20

(ii) Amount paid to John                                             $ 2,920

Discount received                                                       $ 80

(iii) Salaries amounting to $ 3,000 and wages amounting to $ 5,000 were paid on 31st Dec. 2001.

Journal Entries:

(i) Cash A/c                                         Dr.       1,980

Discount A/c                                       Dr        20                   

To James A/c                                                   2,000

(Being amount received from James and discount allowed)

(ii)Adi A/c                                               Dr.    3,000
To Cash A/c                                                                            2,920
To Discount received Ale                                                     80

(Being amount paid to Adi and discount received from him)
(iii) Salaries A/c                                      Dr.   3,000
Wages A/c                                       Dr.  5,000
To Cash A/c                                                             8,000
(Being payment of salaries and wages)