bo u two or more than two transactions occurs on same date and related to the same account then instead of making different entries of every transaction only single entry is passed. This type of entry is known as Compound entry. Example: On December 15, 2016, Goods sold to Banwari and Murari for D 10,000 and a 15,000 respectively. In this, the following compound entry may be passed instead of making separate entries of selling goods to Banwari and Murari. 2016 Dec.2015 Banwari Dr. 10,000 Murari Dr. 15,000 To Sales a/c 25,000 (For goods sold to Banwari and Murari on credit.) The following situations may be for compound entries: 1. When an account is debited and two or more accounts are credited. 2. When one account is credited and two or more than two accounts are debited. 3. When two or more accounts are debited and two or more accounts are credited. Example: Opening entry. Illustration: 12 Pass compound entries in the books of Rakesh from the following transactions: 2016 December 1 Rakesh started business with cash 50,000 Goods 320,000 and Furniture # 10,000. 10 Purchased goods from Praveen 15,000 and from Pramod 20,000. 17 Paid Trade expenses 1,800 and Travelling expenses 700. 25 Sold goods to Dinesh for 25,000 out of which goods of 15,000 sold on credit. 31 Paid Rent 33000 and Salary 6000