What is Contra entry in cash book?

contra A/C used in cash book mainly used to record post dated cheques for controlling purposes to effectively reconcile the custody for the cashiers .
for Ex.
Chq receipt voucher prepared today for chq dated01/11/2013.
the contra entry should be as follows ; Dr.
Post dated chq Cr.
Post dated chq.
custody in01/11/2013 Dr.
Banks A/C.
Cr.
Customer A/C Dr.
Post dated chq custody Cr.Post dated chq so the contra A/C is an Account used to record contingent assets or liabilities for controlling purposes only , while preparing financial statements the effect of contra A/C should be zero , your responsibility as an accountant is to present it fairly to the external auditor as an advantage of maintaining internal control over the area under auditing.
hope i answered your question

a contra entry is that one which covers the both debit and credit sides of the involved accounts in such a way that that real balance remains free of its effect due its netural nature.
Example: Journalizing a transaction related to cash A/C and Bank account in Cash Book.
Example: Sometimes a company is appeared as Debtor and creditor respectively, so in this case complete or portion of the transaction is concerned with contra entry.

Same amount shown in ledger

It is better to say Contra is an adjustment entry, because it doesn't affect your Net Cash Balance.(whether cash in hand or bank, your current asset will be the same)

 

Following are the Transactions- to be accounted under the Contra.

 

* Cash deposited in the Bank,

* Cash Withdrawn from the Bank.

 

By Accounting Principle,

For, Cash Withdrawn from the Bank

Debit- What Comes in, - CASH

Credit- The Giver - BANK

 

For, Cash deposited in the Bank

DEBIT- THE RECEIVER - BANK

CREDIT- WHAT GOES OUT- CASH

 

NOTE:

1.Cash is the REAL A/c,

2.Bank is the PERSONAL A/c

that entry which have double effect on both side as known as contra entry

In the dual entry accounting system, a Contra Entry is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa. Debit and credit aspects of a single transaction are entered in the same account but in different columns. Each entry, in this case, is viewed as a contra entry of the other. Remember the word contra as “Against” or “Opposite”.

Contra means opposite side or the two side is called contra Some of the examples of contra entry1) Cash Deposited in the bank2) Cash Withdrawn for office Use

Contra entry in tally is used to enter the transactions related to cash deposit, cash withdrawals, and fund transfer from bank to bank

No, that is not contra entry.
What you are describing is double-entry transactions and every accounting journal entry is double entry.
A correct example of a contra entry is the depreciation entry.
When assets are purchased, an asset account is debited, for example Equipment.
But assets other than land do not last forever.
For example, your car that you bought today will not be worth the same5 years from now.
This necessitates periodic recording of expense for the asset (which is called depreciation expense).
It also necessitates setting up a contra asset account (accumulated depreciation).
(The entry for depreciation is a debit to depreciation expense and a credit to accumulated depreciation.) The accumulated depreciation balance (contra account) is reported with the asset balance on the balance sheet, thus giving the correct value of the asset account.
In the case of your car that you bought for100,000, if the life of the car is calculated to be ten years with zero residual value, then the annual depreciation expense is10,000.
(Calculation:100,000 /10 years =10,000 per year.) After5 years you'll have to following on your balance sheet: Company Car:100,000 LESS Accumulated Depreciation - Company Car :50,000 Balance:50,000 This gives a truer picture of the value of a company than reporting assets at historic cost.

1) contra entry means double entry like when cash deposit in bank .
bank column debit side and cash column credit site.2) when goods purchased on cash credit to cash book and goods acct will debited.3) when cash received then cash book debit and other will credit all this example is called double entry and contra entry.