Question

A contra entry is one which ____________.

• A. affects both the sides of the same A/c book
• B. affects both the sides of the trial balance
• C. affects one side of a real A/c and another side of a personal A/c
• D. affects both the sides of the same types of A/c

Answer 1

The correct option is A affects both the sides of the same A/c book

A contra entry is an entry which affects both the sides of the same book of entry i.e. Double or Triple Column Cash Book. Whenever cash is deposited into the bank A/c or is withdrawn from the Bank A/c, Cash and Bank both the accounts get affected. It is shown by 'C' in the ledger folio column on both the sides of the Cash Book.

Thus, the correct answer is A.