In case of three columnar cash book, contra entry is used for ____________.

Bank account only

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Cash and discount account

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Cash account only

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Cash and bank account

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Solution

The correct option is A Cash and bank account
In case of Contra Entry of cash book when a transaction involves both cash and bank accounts, it is entered on both sides of the cash book, one in the cash column and other in the bank column, though on opposite sides.

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In case of three columnar cash book, contra entry is used for ____________.

The correct option is A Cash and bank accountIn case of Contra Entry of cash book when a transaction involves both cash and bank accounts, it is entered on both sides of the cash book, one in the cash column and other in the bank column, though on opposite sides.

The correct option is A Cash and bank account
In case of Contra Entry of cash book when a transaction involves both cash and bank accounts, it is entered on both sides of the cash book, one in the cash column and other in the bank column, though on opposite sides.