In this tutorial, I will be talking about how to enter a split transaction and the difference between a simple and a split transaction.
In the previous tutorial, I entered a simple transaction. In Gnucash a transaction with only two splits is called a simple transaction., since it only involves the current account and a single chart of account. An example of two splits in the previous tutorial with the opening balance transaction of the 500.00, the two splits involved are the checking account and the equity: opening balance.
Every transaction in GnuCash has at least two splits, but a transaction can have more than two splits. A transaction that involves three or more accounts is called a split transaction. The need for 3 or more splits in a transaction occurs when you need to split either the “from” or the “to” account into multiple transaction accounts.