In my knoledge contra entry are happen when you drawing money either in your company account at bank and or in your company cash account(capital) and intering the same cash either in your company bank account or your compani cash account (capital) respectevely.
As per the accounting principles, a contra entry is a transaction involving transfer of cash between one cash A/c to another or one cash A/c to another bank A/c i.e., is a transaction indicating transfer of funds from : * Cash account to bank account. * Bank account to cash account.
contra entry is nothing but its a accounting entry. specially use for either cash deposite in bank or cash withdraw from bank. in these, accounting entry are recorded in to both debit and credit side of cashbook is known as contra entry.
If you have a customer who is also a supplier, you may want to offset the outstanding customer and supplier invoices. This is known as making a contra entry. You can offset the two invoices by creating a bank account specifically for the contra entry. This means when you record the invoices as being paid, it doesn’t affect your current bank account balance.
If you have an outstanding sales invoice for £200 and a purchase invoice for £150 for the same person or company, the actual amount owed to you is £50 and the contra entry amount is £150.
After you post the contra entry:
కంట్రా ఎంట్రి అనగా ఎదురు పద్దు. అనగా బాంకులో నగదు వెసినప్పుడు లెదా బాంకు నుండి నగదును తీసినప్పుడు ఇది నగదు పుస్తకంలొ చుపిస్తారు.
- CASH TO BANK
- BANK TO CASH
- BANK TO BANK
- CASH TO CASH
These transactions do not affect financial statement of a organisation.