contra vouchers are used for cash transactions within the same company. as Prajal Mam explained it in the video it is like taking out money from one pocket of your trouser and putting it in the other pocket. that means there in no net cash inflow or outflow involved.
Apr 23 2014 05:05 PM
for e.g. your boss tell you make a cheque drawn on SBI for Rs.50,000/- needed for factory petty cash. this is an example where contra voucher is used. the cash funds are being transferred from one cash balance (in bank ) to another (petty cash till in factory).
hope its clear. if u need more help let me know