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What is contra entry ? definition
In addition to cash dealings, every business has bank dealings. Business has to use cheques and bank drafts as a means of payment. In case of bank column or double column cash book, certain transaction involve both debit and credit side of cash book. This cash book has got bot cash column and bank column. Depositing cash into bank decreases cash, so it will be posted at the credit side of cash book as "By Bank" and the amount will be written 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 or Office" and the mount will be written in the bank column. The transaction has effect on both sides of the cash book simultaneously, so it will be written on both sides and will be denoted by the word "Contra", the short form of which is C.


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