Asked by: Sarela Zamiasked in category: General Last Updated: 3rd February, 2020
What is meant by combined entry?
Similarly one may ask, what is compound journal entry with example?
Definition: A compound journal entry is one that affects three or more accounts. In other words, it's an entry that debits or credits at least three accounts in the general ledger. Most business transactions only affect two accounts in the ledger. Take the purchase of inventory for example.
One may also ask, what is simple and compound entry? Compound journal entry is an accounting entry which affects three or more account heads. A simple journal entry has just two rows i.e. one debit and one credit, whereas a compound journal entry has three or more rows.
Beside this, what is an opening journal entry?
When the next financial year begins, the accountant passes one journal entry at the beginning of every financial year in which he shows all the opening balance of assets and all the liabilities include capital. After that, the journal entry is called an opening journal entry.
What is opening entry explain with example?
An opening entry is the initial entry used to record the transactions occurring at the start of an organization. The contents of the opening entry typically include the initial funding for the firm, as well as any initial debts incurred and assets acquired.