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Contra Entry is related with cash and bank, either when cash is deposited in bank or withdrawn from bank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