COMBINED OR COMPOUND ENTRY - Definition

COMBINED OR COMPOUND ENTRY

So far we have seen transactions which involve only two accounts. Some times, a transaction may involve more than two accounts.Some time , there may be more transaction of the same nature taking place on the same date.In such situations, such transaction may be recorded by means of single journal entry, Instead of passing separate  entries. Such an entry called “Combined”or “Composite”or Compound journal entry, It may be recorded in the following three ways

1 . By Debiting one account and crediting two or more accounts.

2   By Debiting two or more accounts and crediting one account.

3   By Debiting two or more accounts and crediting two or more accounts.

BANK RECONCILIATION STATEMENT-Meaning

Business man mostly keep a cash book with Bank column. This column shows balance at the bank.bank issues a pass book to the businessman.Who opens his account in it. The balance shown by 'bank' column of cash book and pass book must be same, bust mostly they differ due to various reasons.Therefore a statement is prepared to reconcile this difference.this statement called 'Bank Reconciliation Statement'.