Question

Answer in once sentence only.

State the meaning of Simple Entry.

Answer 1

When only two accounts are affected while recording a transaction in the book of original entry, i.e. one account is debited and one account is credited, it is known as a Simple Journal Entry. For example, if Rs 500 were paid to Hari, the entry will be:

Hari		Dr.	500
	To Cash A/c			500
(Payment is made to Hari)