Compound Journal Entry


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.
There are 2 main types of compound journal entries: The Simple Compound Entry and the Complex Compound Entry.


More on accounting and auditing: Accounting Cycle, Accounts Payable, Accounts Receivable, Amortization, Appreciation, more...


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