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Starting from the basic of Journal entry
A Journal is a bookkeeping process of financial transactions related to any firm. It holds all the records of debits and credits that are made by the company within a specific period of time. This means you can see the date of debit and credit in the Journal entries.
Mainly there are two types of journal entries:
- Simple Journal Entry
- Compound Journal Entry
What is simple Journal entry?
In simple Journal entry, the record of debits and credits will be recorded as one debit and one credit. You have to create multiple simple Journal entry as per the numbers of transactions.
What is compound Journal entry?
Irrespective of simple Journal entry where it has one debit and one credit, compound Journal entry consists of more than one debits and credits.Here, it is possible to have one debit and two or more credits plus two or more debits and one credit.
Students should not get confused while understanding its concepts. This is where the compound or composite Journal entries homework help services is quite effective to clear all your doubts.
In other words, compound journal entry can also be defined as the multiple simple Journal entries of records in a single accounting entry. This not only saves times, but it also eases the process of finding any financial transaction if necessary.
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