Compound Journal Entries

Sometimes a single transaction affects more than two accounts at the same time — for instance, a payment that is settled partly in cash and partly through a discount, or a single voucher paying two different expenses together. Instead of writing two or more separate journal entries, all the affected accounts are combined into one compound (combined) journal entry, as long as the transaction occurred on the same date.

A compound entry may have:

• One account debited and two or more accounts credited, or
• Two or more accounts debited and one account credited, or
• Two or more accounts debited and two or more accounts credited. …