Question

What is contra entry ?

Answer 1

contra entry is the entry under double entry system of book keeping under which both cash balance and bank balance of a business is affected simultaneously.
For Example ;
cash withdrawn from bank for office use Rs.1000
thus, in this case we find that when cash is withdrawn from bank cash balance with the bank will decrease while bank balance of the business gets decreased.
so cash account is debited to show increase in cash balance and bank account is credited by the same amount to show the effect of decrease in bank balance.
ENTRY
  cash A/C                 ....dr                                1000
     To bank A/C                                                                1000
  (Being cash withdrawn from bank Rs.1000)

Answer 2

Answer:

Explanation:

contra entry is the situation in which the entry is being done foe both the sides bank and the cash in hand