A journal entry can consist of no more than one account to be debited and one account to be credited?

Question

A journal entry can consist of no more than one account to be debited and one account to be credited

true are false

Answer 1

True but sometimes there can be two entries for eg: credit sales in which case when the Accounts receivable is credited you will have to debit cash after sales has been recognised as credit and accounts receivable as debit an asset. This is when cash is received later after sale is accounted for. Like this sometimes there will be more than one entry for a single transaction sometimes called reconcilliation.

Answer 2

False - you can combine entries that are tied to the same transaction in what's called a compound entry.

ex. when closing accounts for the financial period, you close temporary accounts to income summary:

income summary xxxxx
supplies expense xxxxx
insurance expense xxxxx
(the last two are indented as credits)

-you do this so you have all the closing entries in one place; that way, you can easily see the amount that needs to go to retained earinings.

Answer 3

False

I am a Certified General Accountant.

Trust me journal entries can be long and complex.