A financial professional will be in touch to help you shortly. Someone on our team will connect you with a financial professional in our network holding the correct designation and expertise. Our team of reviewers are established professionals with decades of experience in areas of personal finance and hold many advanced degrees and certifications. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
The loan was repaid on Dec 31, 20X2, the year-end of FGH Company.
What is the approximate value of your cash savings and other investments?
Mr. Mahender in need of cash asks the organisation if they would be able to pay up in advance. To motivate them into paying in advance he offered them a discount of 200 on the amount due. Having purchased goods on credit, the organisation is due to Mr. Mahender to the extent of 5,000. Credit period allowed is 2 months, and the due date of payment is a month away. Since in both the entries the ledger account cash is affected, we can combine the two entries into one. Find out which software will help you manage all your accounting needs.
Beyond just the overall boost in productivity, compound entries lead to a simpler presentation that’s beneficial for all readers and users of accounting and financial reports. Let’s take a couple of examples to illustrate how two or more simple entries can be merged to record only one compound journal entry. We can certainly link two or more accounts when we make a compound journal entry. Linked accounts, if any, will be debited and credited in the same part of cb contingent liability the entry. A simple compound/combined entry is a journal entry derived by combining two or more simple journal entries. The simple compound/combined entry can always be broken down into the constituent simple journal entries.
Stay up to date on the latest accounting tips and training
The loan would be repaid along with interest on December 31, 2022. Ask a question about your financial situation providing as much detail as possible. Your information is kept secure and not shared unless you specify.
Single Accounting Event
