What is contra entry? How can you deal this entry while preparing double column cash book?

Explanation

An entry that's recorded to reverse associate degree entry on the alternative aspect of associate degree account is termed contra entry. for instance, once a debit gets recorded in associate degree account, a contra entry are announce within the accounting. equally a contra entry are announce in accounting system if associate degree entry gets recorded in accounting.
Some transactions that may result in contra entry ar provided below.

1. gap of a checking account

2. Depositing money into bank

3. Withdrawal from bank

These transactions are recorded in a very double column money book.


This is therefore as a result of each aspects of the dealing seem within the money book itself. once money is paid into the bank, the number deposited is written on the left facet within the bank column and at an equivalent time, an equivalent quantity is entered on the correct facet within the money column.
The reverse entries square measure recorded once money is withdrawn from the bank to be used within the workplace. Against such entries the word C are going to be written within the LF Column.