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Contra Entry

This chapter covers

  • What is Contra Entry and when to make this entry.
  • How to make Contra Entry.

Contra Entry

Q. What is Contra Entry ?

A Contra Entry is a transaction involving transfer of Cash between one cash A/c to another bank A/c i.e., is a transaction showing transfer of funds from:

  • Cash Account to Bank Account.
  • Bank Account to Cash Account.
  • Bank Account to Bank Account

For such transactions we have to make this entry.

Q. How to make Contra Entry ?

While making Contra entry , enter Entry No. and select the Date.

1) If you are withdrawing Cash from your Bank then

  • In Debit side, you will Select Cash In Hand Account & add the Amount and in Credit side, select the Bank name from which you are withdrawing the Cash and add the amount.

  • Contra-EntryImage

    2) If you are Depositing the Cash to Bank then

  • In Debit side, you will Select the Bank name and add amount & in Credit side select Cash In Hand Account and add the deposited amount.

  • Contra-entry-2Image

    In this way you can make your Contra Entries.


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