Posted in Finance, Accounting and Economics Terms, Total Reads: 148
Definition: Blind Entry
Blind entry in accounting means an entry made in the books of an account showing only the transaction amount with basic information mentioned in particulars and no detailed information about the transaction is mentioned.
It can create confusion when there are many entries made in the accounting book and may be difficult to allocate the transactions section wise or product-wise. This may lead to providing wrong data and information to the business owners and clients. This method can be used if a company has different accounting books for their different products so each products transaction is recorded with ease in their respective books otherwise a single book for all will only lead to confusion.
Sometimes accountants make blind entry and provide the explanation as a note at the end of the register to lessen the complication in the entry or to reduce the repetitiveness in the entry. This are mostly seen in the annual reports of the companies where most of the details and information are mentioned in the notes attached at the end of the accounting sheets.
Table 1 shows an example of blind entry with no detailed information and only the transaction information and Table 2 with detailed entry of transaction product-wise.