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)

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)

Comments

Police junior clerk old paper 2018

Distinction between Book-keeping and Accounting

S.No Book-keeping Accounting 1 It is the recording phase of an accounting system It is the summarizing phase of an accounting system 2 It s the basis of accounting It s the basis for business language 3 Persons responsible for bookkeeping are called book-keeper Persons responsible for accounting are called accountants 4 It does not require any special skill or knowledge It requires special skill and knowledge 5 Personal judgments of the bookkeeper is not required Personal judgments of the accountant is essential 6 Financial statements are not prepared from bookkeeping records Financial statements are prepared from accounting records. 7 It does not give the complete picture of the financial condition of the business unit It gives the complete e...

Accounting Knowledge

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