Question

when contra entry is passed ?
good answers will be brainliest for sure ;)​

Answer 1

Answer:

Contra entry is passed in the following situations:

1. When Cash is deposited into the Bank.
2. When Cash is withdrawn from the Bank for office purpose.
3. When Bearer Cheque is received on previous date and deposited into the Bank.

Meaning and Extra Information of Contra Entries :

The entries recorded on both sides of the cash book are called as "Contra Entries".

It occurs only when Cash and Bank Account are simultaneously affected in a transaction.

in the Ledger Folio column, Contra entries are denoted by capital letter "C".

Following Journal entries are passed as under accounting treatment for contra entries :

1. When Cash is deposited into the Bank:

Bank A/c Dr.

To Cash A/c

2. When Cash is withdrawn from the Bank for office purpose:

Cash A/c Dr.

To Bank A/c.

3. When Bearer Cheque is received on previous date and deposited into the Bank.

Bank A/c Dr.

To Cash A/c.