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.
Mar 10 2014 03:19 PM
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.