what is contra entry

Dear All,

Could you please explain me, what is CONTRA entry?

Replies (8)
It is better to say Contra is an adjustment entry, because it doesn't affect your Net Cash Balance.(whether cash in hand or bank, your current asset will be the same)

Following are the Transactions- to be accounted under the Contra.

* Cash deposited in the Bank,
* Cash Withdrawn from the Bank.

By Accounting Principle,
For, Cash Withdrawn from the Bank
Debit- What Comes in, - CASH
Credit- The Givert - BANK

fOR, Cash deposited in the Bank
DEBIT- THE RECEIVER - BANK
CREDIT- WHAT GOES OUT- CASH

NOTE:
1.Cash is the REAL A/c,
2.Bank is the PERSONAL A/c
the entry which is posted on both sides of cash book
can u explain how bank is personal a/c?
bank is an institution, having a separate legal identity under Banking regulation Act 1949. hence Bank A/c is a personal A/c and not a real A/c.
Bank is a place which has accepted your offer of depositing money into its hands. When people deposit money in their bank accounts, banks are liable to return it back to the depositers on their demand or payment has to be made by Banks to parties who present the cheques issued by you.

By this, the Bank merely acts as an agent by handling your money. It is as good as you handling your money as per your wish.That is why Bank Account is a Representative personal account.
By Accounting Concepts, BANK is a Place, Where you Saved and treasured your money. So, by default bank becomes as a person for your Operations. To cut the Long Story, Bank is a Current Asset, if it has DEBIT balance in your Books. By Nature it becomes as PERSONAL A/c, Since it ia a STATUTORY person.
contra entry is that entry where where both the real a/cs are debited or credited , cash or bank vice versa the contra should be made between cash to bank or bank to another bank or same bank to another a/c

What is contra entry? is it effect only cash & bank a/c?Please email on accountsbaddi @ cipla.com

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details