Question

What is contra entry how can you deal with this entry while preparing double column cash book

Answer 1

contra entry are written both side dr.and cr.side same date but debit side format
to bank a/c. amount fill with cash column
and credit aide
by cash a/c. amount fill with bank column

Answer 2

Contra Entry comes into existence when there is no net cash outflow or inflow from the business.

For ex : when cash is withdrawn from bank, journal entry will be :

Cash A/C. Dr. Rs.xxx

To Bank A/C. Rs.xxx

In the cash book , on the debit side we write 'To bank a/c ' with respective amount in the cash column .

Similarly, on the credit side we write 'By cash a/c' with respective amount in the bank column.

And mention letter "C" in the ledger folio column.