Compound journal entry

Compound journal entry
See also

Compound journal entry is one of two types of entries in the general journal entry. Unlike the "simple entry" in which transaction posting applies to only two accounts (one debit account and one credit account), an ompound entry is a transaction posting that affects three or more accounts[1].

Types of recording

it is an accounting entry with the following combinations[2]:

  • One debit and two or more credits
  • One credit and two or more debits
  • Two or more debits and credits.


Below conditions must be met[3]:

  • Only one account for all different transactions must be either debit or credit,
  • Date of making the transaction should be the same,
  • Their nature should be the same.

In a coumpond journal entry, credit, debit or both parts of an entry consist of more than one account.

An example

Case study: on 1st of July, the company buys a delivery van costs $1,4400 years, now pays $8800 cash and agrees to pay the remaining $6600 on the account (to be paid later)

General journal
Date Description Ref. Debit Credit
10 Equipment 1,4400
Cash in Checking 8800
Accounts Payable (Purchased van for cash with balance on account) 6600

The standard format requires all charges to be exchanged before the credit[4].


  1. Donatila A. J., 2007, p.120
  2. Tulsian P.C. & Tulsian Bharat., 2014, ch.12
  3. Kumar V., 2018, ch.10
  4. Weygandt J. J., Kieso E.D., 2018, ch.2-9


Author: Agnieszka Katarzyna Sikora