Question

which of the following is a transaction of contra entry?
a) sale goods to Y ₹12,500.
b) Godown rent ₹7,000 paid by cheque.
c) Received ₹12,000 in full settlement of ₹12,500.
d) Cash deposited to bank ₹9,000.​

Answer 1

Option D

Explanation:

Contra entry is related with cash deposited or withdrawn from bank.

For example

1. Cash deposited into bank for official use

Bank a/c ..Dr.

To Cash a/c

2. Cash withdrawn from bank for official use

Cash a/c. ..Dr.

To Bank a/c