When Is Contra Entry?
A Contra Entry Is Recorded When the Debit and Credit Affect the Same Parent Account and Resulting in a Net Zero Effect to the Account. These Are Transactions...
A contra entry is recorded when the debit and credit affect the same parent account and resulting in a net zero effect to the account. These are transactions that are recorded between cash and bank accounts.
What is contra entry and example?
Contra entry is a transaction which involves both cash and bank. Both debit aspect and credit aspect of a transaction get reflected in the cash book. For example: Cash received from debtors and deposited into bank. Cash withdrawn from bank for office use.
When contra entries are passed?
Contra-entries are passed only when Double column cash book is prepared. The reason for making two entries is to comply with the principle of double entry.
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