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what do you mean by Compound Journal Entry ?

Hi Good Morning sir
Sir ,Please explain what do you mean by Compound Journal Entry ?
Thanks a lot in Advance sir

asked Dec 4, 2015 in Journal Entries by RAhul reddy (13 points) 316 views

1 Answer

0 votes
A Journal entry which contains more than two accounts is called a compound journal entry.  Let us take an example.  Goods are sold to Ram for Rs.25000.  Ram pays Rs.10000 in cash and balance he promises to pay after one month.  The journal entry for this transaction will be:

Cash A/c          Dr.  10000

Ram A/c           Dr.  15000

  To Sales A/c                         25000

Now the above journal entry  contains three accounts, hence is called a compound journal entry.  I am giving below a link where method of posting a compound journal entry is given.

http://www.jbsclasses.com/q2a_link/index.php?qa=777&qa_1=how-to-post-a-compound-journal-entry-in-the-ledger&show=777#q777
answered Dec 4, 2015 by jbsclasses (3,971 points)
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