Question

Explain the counter entry in cash book & explain why & when it did

Answer 1

first of all it's called contra entry

it is used in double and triple column cash books only

bcoz, in these cash books there are both cash and bank columns

so, when both cash and bank a/c gets involved,

then both accounts are to be recorded in both sides of cash book.

eg, when cash is paid into bank,

debit the receiver bank

credit what goes out cash

so, in ledger by bank cash column and to cash bank column to be filled

so all the entries that affect cash and bank r recorded in the same manner

Ps. only in cash book.

hope it helps!!!!!