Contra entry

Page no : 2

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 July 2018

Originally posted by : prasad Nilugal

I am sorry I have not read the query properly or due to oversight its in Hindi ,

so any party or sundry debtors deposited cash directly in the bank its not contra entry

entry will be

First if we book the entry

1) Sundry debtors

To sales

(booking of entry ) - The sale entry is okay...

When party deposit directly in the bank as per query - This is Query

Bank

To sundry debtors

( Beign payment received ) - This is Your reply ---

So ,sorry , Its due to oversight mistake , I thought cash deposited in the bank

When party deposit directly in the bank as per query -

Bank
To sundry debtors ...

Please reply this one :

If Party deposited directly to bank then You enter as per your reply...

Say Seller in City A and Buyer in City X - If buyer deposit cash then will entry made as per your reply... right?!

In case seller's staff going to City X and received cash and deposited bank in city X....

Then How to You enter in Your Books...?

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prasad Nilugal ( GST Practitioner & Accounts ) (14870 Points)
Replied 26 July 2018

First entry if made cash sales

Cash A/c Dr

To sales A/c Cr

(Being cash received (cash sales ) form debtors in city x)

Then we deposited in to the Bank (contra entry )

Bank A/c Dr

To Cash A/c Cr

( deposited in to the bank collected form party )

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 July 2018

Originally posted by : prasad Nilugal
	First entry Cash A/c Dr To sundry debtors (Being cash received form debtors ) Then we deposited in to the Bank (contra entry ) Bank A/c Dr To Cash A/c Cr ( deposited in to the bank collected form party )

Dear the reply is to My query or First query...?

Dimple (STUDENT) (39 Points)
Replied 26 July 2018

It is cash receipt. But deposited in bank. And sorry for the reverse entry...

Entry would be

Bank Dr.
To party

1 Like

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 July 2018

Mr. Dimple.,

Please be understand the concept...

In a Bank Account Cash deposited in anywhere of India then it's only Cash to Bank if it's deposited by account holder of any other person...

Provide 1st Receipt entry

Party A/c - XXXX
Cash A/c - XXXX

Contra Entry will be posted as;

Cash A/c - XXXX
Bank A/c - XXXX

Note :

Here why You all are confused except Mr Sarath Rajendran.,
Bcoz, You all are acting Consultant / Tax Professionals and You can't like 2 entries in single activity at time of finalize the Accounts...

Even in case Anyone see the transaction as per accountant or Accounting professional then You ll enter 2 entries in this transaction...

Check out the Final Point and Give solutions :

As per above view if anyone deposit cash Rs. 10 lakhs then as per cash deposit rule "Who is get notice from ITD?" the depositor or account holder...

2 Like

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prasad Nilugal ( GST Practitioner & Accounts ) (14870 Points)
Replied 27 July 2018

If we made any cash sales

Cash A/c Dr

To sales A/c Cr

( Being cash received on sales )

Then deposit into the Bank (contra entry ) in our books of accounts

Bank A/c Dr

To Cash A/c Cr

(Being cash collected deposited in to the bank )

Sajan (Financial analyst) (22 Points)
Replied 27 July 2018

Its bank a/c Dr To party accoubt

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 27 July 2018

Cash deposited dirctly in Bank by Customers then two entries will be pass as Receipts & Contra...

Receipt :

Customers Account - Rs. XXXXX

Dr. Cash Account - Rs. XXXXX

Contra :

Cash Account - Rs. XXXXX

Dr. Bank Account - Rs. XXXXX

surender saini (ACCOUNTANT ASSISTANT) (30 Points)
Replied 28 July 2018

In this Two Entries will be passed Entry will be like that

1. Bank A/c Dr

To cash

( Being Cash deposit in Bank )

Cash A/c Dr

To Party name

Being Cash Received From party name

Explaination :- party has deposited Cash in your bank Account . So in this case you have to consider that you deposit cash in bank .and you have to receive cash by showing party name and make Recipt Slip of Rs 10,000 in Each Day. Not more than Rs 10,000

Rinky Senger (_) (205 Points)
Replied 28 July 2018

When a party (say debtor) has deposited cash directly in our bank, than its not a contra entry. Contra entry involves debit/credit of cash and Bank A/c simultaneously. But here it needs to passed in two entries, one contra and another in receipt voucher;

Bank A/c ...dr

To Cash A/c

Cash A/c ...dr

To Party A/c.

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SANJOY SARDAR (Accountant) (27 Points)
Replied 30 July 2018

Cash received & self deposite

Rohit Shankar (2 Points)
Replied 01 August 2018

No, Only when company's cash deposit in company's bank a/c, then only shown as contra. This case is only increase bank balance. & Entry is Bank Dr to Pary Name