What is Contra entry?



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What is Contra entry, Assumptions..

4 Answer(s)


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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 Cash account

Cash account to Bank account

Bank account to Cash account

Bank account to Bank account

To view the Contra Voucher Entry Screen:

Go to Gateway of Tally > Accounting Vou

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Book keeping entry that is entered on the opposite side of an earlier entry to cancel its effect on the account balance is called Contra Entry.

It is recorded only when one of the below entry is happened.
Such as -
1. When cash deposited into bank.
2. When cash withdrawal from bank.

In the journal entries some of the entries are reflect more than 2 related ledgers are called the contra entry. That means it is the entry that will decrease the amount in one account and increase the amount
in the other account that was relating to same entry of the above entry.

Business activity is fluid. Revenue and expense generating activities are in constant motion. Just because it is time to turn a page on a calendar does not mean that all business activity ceases. But, for purposes of measuring performance, it is necessary to draw a line in the sand of time. A periodicity assumption is made that business activity can be divided into measurement intervals, such as months, quarters, and years.

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In simple, Contra entry means entering the transaction in 2 books which will appear two times.

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How to Make a Journal Entry in Hindi simple way

https://mypkweb.blogspot.com/2017/12/how-to-make-journal-entry-in-hindi.html

visit also- website-mypkweb.blogspot.com

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