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what is the purpose of contra entry ?
In case of a double column cash book, certain transactions involve both debit and credit side of cash book. Depositing cash into bank decreases cash, so it will be posted at the credit side of the cash book as "By Bank" in the cash column. The deposit will increase our bank balance, so it should also be recorded at the debit side of the cash book as "To Cash" in the bank column. Thus for the transactions that affect both sides of the cash book simultaneously will be denoted by the word 'Contra', the short for which is "C".


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