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What is Entry and its types?

Recording a transaction in an appropriate place of the concerned book of account is called entry. It is of two types:

Ø  simple entry

Ø  compound entry

1.       Simple entry

The entry in which only one account is debited and only one account is credited is named as simple entry. E.g. Goods purchased for cash Rs.9000

 Journal Entry:                                   

 Purchases           9000

             To cash                 9000

   (Goods purchased for cash)                                                                                             

  1. Compound entry

An entry in which more than one account is debited or more than one account is credited is called compound entry. E.g. Goods purchased for cash Rs.9000 and on credit from Mr.A Rs.10000.

Journal Entry:                                    

Purchases           19000   

           To Cash                9000

           To A                     10000

       (Goods purchased on cash and credit)                                                            

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