Question

Which two accounts are involved in Contra Entry ?
A. Cash and Discount.
B. Cash and Bank
C. Bank and Discount
D. Cash and any other Account

Answer 1

Answer:

A contra entry is recorded when the debit and credit affect the same parent account and resulting in a net zero effect to the account. These are transactions that are recorded between cash and bank accounts.

Answer 2

Answer:

(B) cash and bank accounts