Definition: a Compound Journal Entry is in accounting an entry involving more than two accounts. In a Compound Journal Entry (CJE), there are 2 or more debits, credits, or both. Rather than making separate journal entries for the same transaction, we combine the debits and credits under one entry. CJEss are made when there is more than one credit, more than one debit, or more than one of both being recorded having the same nature in the same day. Compound entries are a combination of multiple simple journal entries. Nevertheless, also in CJEs, the total of credits and debits must be equal. |
More on accounting and auditing: Accounting Cycle, Accounts Payable, Accounts Receivable, Accrued Revenue, Amortization, more on accounting and auditing... MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program. We keep it short and provide links to high-quality websites where you can learn more about your topic. |
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