Answer:
In day to day business, various similar transactions take place on the same day and every account is either debited or credited. Thus instead of passing different entries, a compound entry can be passed, which involves more than one debit or more than one credit or both. This makes the journal less bulky and avoids duplication.
| Previous Question | Next Question |
| List the type of transactions entered in Journal proper? | What is Journalizing? What are the columns of a journal? |