A journal entry which contains only one debit entry and one credit entry is called a Simple Journal Entry. Example of simple journal entry is given below
A journal entry which contains more than one debit entry or more than credit entry or both is called a Compound Journal Entry. It should be noted that total amount debited must be equal to total amount of credited. In fact, a compound journal entry is nothing but a combination of two or more simple journal entries. Example of a compound journal entry is as under;
