Question

In double column cash book, when does contra entry arises?

• A. Withdrawal of cash from bank
• B. Payment to Creditors.
• C. Withdrawl of cash from bank for personal use
• D. All of the above

Answer 1

The correct option is A Withdrawal of cash from bank

If an amount is entered on the debit side of the cash book, and the exact amount is again entered on the credit side of the same account, it is called “contra entry”. Similarly an amount entered on the credit side of an account also may have a contra entry on the debit side of the same account.