Question

How to write contra entry for " deposited cash into bank" 1300.

Answer 1

Bank A/C Dr. Rs.1300      To Cash A/C.   Rs. 1300 (Being cash deposited into bank)

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Cash A/c - real A/c , money goes out of the company therefore its credited

Bank A/c - personal A/c , where banker receives the money therefore its debited

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Journal entry

Bank A/c   Dr  1300

       To cash A/c            1300

(being cash deposited in bank )

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posting in ledger

in cash book - credit bank A/c of Rs. 1300

In bank book - debit Cash A/c of Rs.1300