Use of Contra Entry

yes dis type of contra entry is possible...d funds may transfer from 1 bank to another.......

hi dear,

trnasfer from 1 bank to another bank in this case u can contra and other case, if cash draw from bank for office use and cash deposited in to bank that is contra but cash draw from bank for personal use its expenses

For further details , I will be more than glad to do the needful.

 

Eg Amount transfered from BANK X to BANK Y

BANK Y a/c .........Dr

To BANK X a/c

 PLZ ask for further query

when cash withdrawn for personal use capital a/c should be debited coz it is take way money frm business n credited to bank a/c to reduce bank balance...usng business money for personal use cant be an expense....

entries----

capital    a/c        dr

       To  bank   a/c

What is the reason for confusion

Its simople and a\you all know that with out passing any entry you don't update the bank. and its upon you to whats type of voucher used. but entry will be same in any type of voucher.  Regarding the withdrawal from bank for personal use you have to make first entry for withdrawal bcoz the bank is in name of the firm and the cash came in business. After making entry for withdrawal you can debit the drawings or expenses account.

>>Rajesh

Hi.....

Basically We do contra entry in following sitution.

1. Cash to Bank. 2. Bank to Bank 3. Cheque received but not present in Bank 4. Cash withdraw for official use. etc.

Hi.....

Basically We do contra entry in following sitution.

1. Cash to Bank. 2. Bank to Bank 3. Cheque received but not present in Bank 4. Cash withdraw for official  use. etc.

BIPULS EXPLANATION IS CORRECT

in my view contra entry is used only cash & bank transtion because contra entry effected two ledger one cash book & another bank Book. any entry which is effected two book they are contra entry

CONTRA ENTRY POSSIBLE ONLY IN THE FOLLOWING CASES

1. BANK TO BANK TRANSFER

2. CASH DEPOSITED INTO THE BANK

3. CASH WITHDRAWL FROM THE BANK

cash withdrawn for particular expense(Rs.3000),should I use contra or payment voucher?

 

This is searching in our portal I am not satisfied these answers but I want to share my views Please send the reply this is correct or not Company maintained cash / bank balances for company obligations. These balances are Company Assets. Cash 1000/- deposited in bank. Above transaction two things happened. Bank A/c Dr 1000 To Cash A/c 1000. Above transaction u can use payment voucher and receipt voucher why because cash paid to bank and bank receipt taken as cash. So thease two transaction not required if ur going to use contra entry.