Explain what is a compound journal entry ?

December 8th, 2011 Comments off
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Compound journal entry is an entry having more than one debit or more than one credit

 

Example of compound journal entry:

Factory land was bought (debit) for $500,000, with a downpayment of cash (credit) of $100,000 and a mortgage(credit) of $400,000

 

 

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