Multiple choice

In a compound journal entry

  1. only one account is affected

  2. two accounts are affected

  3. more than two accounts are affected

  4. none of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 More than two accounts are affected in a compound journal entry. In a compound journal entry, there may be two or more accounts, to be credited and only one to be debited or vice-versa. For example,  the expenses paid on salary Rs 1,000 and postage Rs 200 a combined journal entry is passed, which is compound journal entry. Salary A/c and Postage A/c would be debited and Cash A/c would be credited |||| |---|---|---| |Salary A/c                Dr|1,000| | |Postage A/c            Dr|    200| | |   To Cash A/c| |1,200|  

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