compound entries and contra entries are same or not
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Answer:
Compound journal entries are those in which more than two accounts are affected. A compound entry may require that two or more accounts be debited or two or more accounts be credited. Suppose a business borrows money to purchase an asset, such as a building. If the company pays cash for a portion of the cost and borrows the remainder, the corresponding entries in the journal could affect cash, in this case credited for the amount paid on the building. Notes payable would also be credited for the balance owed on the building. Real property or, specifically, buildings would be debited for the full purchase price, equaling the amount paid, plus the amount due. Because more than one credit was entered, this would be an example of a compound journal entry.