Question

Opened bank account is a contra entry?

Answer 1

Hi friend,

# Yes !

Explanation :-

In Double Entry accounting system , a contra is an entry which is recorded to reserve or offset an entry on the other side of an account. Remember , the word contra means " Against " or" Opposite ". There are three contra entries :-

1) Cash deposited in Bank

Journal entry :-

Bank A/c---------Dr.
To Cash A/c

( Being , cash deposited into the bank )

2) Cash withdrawn from bank for office uses.

Journal entry :-

Cash A/c-----------Dr.
To Bank A/c

( Being , cash withdrawn for office use )...i hope it helps you