Question

What is contra entry give an eg

Answer 1

Dear Student

As per the Accounting Principles, a Contra entry is a transaction involving transfer of cash between one Cash A/c to another or oneCash A/cto another Bank A/c i.e., is a transaction indicating transfer of funds from:

• Cash account to Cash account

• Cash account to Bank account

• Bank account to Cash account

• Bank account to Bank account

For E.g
X deposited Rs 10,000 cash from business to bank account of business .
Here contra entry would be :

Bank A/c	Dr.	10,000
To Cash A/c			10,000
(Being cash deposited in bank)

Regards