What is contra entry? how to record in journal?

Question

Deleted user · Answer

Cash Account Dr
Bank Account Cr

Or

Bank Account Dr
Cash Account Cr

Sethumadhavan krishnan · Answer

Contra entry is between bank and cash.

Anil Lalwani · Answer

Contra Entry is related with cash and bank, either when cash is deposited in bank or withdrawn from bank

the contra entry is passed as under:

Cash account debit

To bank

OR

Bank a/c Dr.

to Cash

1st case is cash withdrawal and 2nd case is cash deposit.

Deleted user · Answer

Contra entry is that which requires two entry in a double entry system of account.

It is done only to cash deposit in bank or withdrawal from bank.

to record in journal for deposit it will be

Bank A/C Dr

To Cash

to record in journal for Withdrawl it will be

Cash A/C Dr

To Bank