Question

Select the most appropriate alternatives from those given below and rewrite the sentence.

Transaction related to cash & bank a/c are entered in ________ voucher.
a) Purchases
b) Sales
c) Contra
d) Payment

Answer 1

Transaction related to Cash and Bank a/c are entered in Contra voucher.

Explanation:
Contra Voucher is a type of voucher that is used for recording the transfer of funds between the Cash and Bank Account. A Contra entry refers to a transaction that involves the transfer of funds between:

1. Cash A/c to other Cash A/c or Bank A/c
2. Bank A/c to Bank A/c