Question

What do you mean by compound entries in journal? explain with example ​

Answer 1

Answer:

A compound journal entry is an entry involving more than two accounts. In a compound journal entry, there are two or more debits, credits, or both. If you have more than one debit and only one credit, the sum of your debits must equal the credit.

Answer 2

Answer:

A compound journal entry is an accounting entry which effects more than two account heads. A simple journal entry has one debit and one credit whereas a compound journal entries includes one or more debits and/or credits than a simple journal entry.

Example;

Example Revenue Journal Entries:

Sales entry. When goods or services are sold on credit, debit accounts receivable and credit sales. If a sale is for cash, then the debit is to the cash account instead of the accounts receivable account.