Question

Select the most appropriate alternative from those given below and rewrite the sentence.
Transactions related to Cash and Bank A/c are entered in _________ voucher.

• A. Purchases
• B. Sales
• C. Contra
• D. Payment

Answer 1

The correct option is C Contra

A typical cash book is having two column i.e. cash and bank column. Its called two column cash book. Transactions related to cash and bank are recorded through these columns.

In case of cash withdrawal and cash deposit, the entry is passed through both the columns.

For example, cash withdrawal from bank Rs.5000/- . In such case, cash of Rs.5000 is recorded in the receipt side of cash book and same amount is recorded in bank column of payment side. Its called "contra" transaction.

To denote specifically "C" is put against each of the contra transaction.