Question

What is compound journal entry

Answer 1

Dear Student


A simple journal entry is an entry in which one account is debited and one account is credited. Now in a case when in a single journal entry if more than one account is debited or more then one account is credited then it is called compound journal entry.

For E.G : -
Compound Journal entry for:- Total Salary paid RS. 700 including prepaid salary RS. 200.

Salary A/c	Dr.	500
Prepaid Salary A/c	Dr.	200
To Bank A/c			700
(Being salary paid including advance salary)

Regards