Register now or log in to join your professional community.
Please search on google for such simple definition.
Contra entry for cash withdrawal and cash deposited in Bank.
Contra entry is passed in the following circumstnaces;
1. To reverse an entry already posted;
2. To correct an amount of already posted entry;
3. To reverse an expense/Income/Asset/Liability
Contra entry - for cash deposit or cash withdrawl from bank.
contra entry - through banks all deposit and withdrawl entries are made in contra voucher
Contra entries are passed between cash & bank a/c. either cash deposited in bank or withdrawn from bank. As this entries are not accepted in Payment or receipt vouchers in general accouting softwares.
The entry in which more then one things are debit or credit.
CONTRA ENTRY IS PASSED WHEN TRANSACTION DEBITED IS ALWAYS CASH A/C OR BANK A/C AND TRANSACTION CREDITED IS ALSO BANK A/C OR CASH A/C.
EXAMPLE.
1.cASH WITHDRAWN OR DEPOSITED N BANK.
2.TRANSFER OF AMOUNT FROM ONE BANK TO ANOTHER OR VICE VERSA.
Contra Entry is passed to:
Reverse
Cancel
or Correct
the effects of any previously made entry in the accounts.
Some people say its only associated with cash or bank, I must say they are wrong.
In Professional accouting systems and practices, even while using softwares, correction revarsals and cancelations must not be done by edditing, delleting or what else.
Contra enty is a normal General entry, its called contra because it Reverses, Cancels or Corrects the effect.
contra entry is made when cash deposited or withdrawn from the bank
payment deposit or withdrawal
