Contra Entry in Cash Book (Basic Concept)

A contra entry is a transaction that involves both cash and bank accounts in a company's cash book. It is also known as a bank-to-bank transfer or bank transfer entry. The basic concept of a contra entry in a cash book is that it is an entry that shows the movement of funds from one bank account to another bank account belonging to the same entity.
For example, if a company needs to transfer money from its checking account to its savings account, a contra entry is made in the cash book. The entry is recorded as a debit in the checking account and a credit in the savings account. This means that the balance of the checking account will be reduced by the amount transferred, while the balance of the savings account will be increased by the same amount.
Contra entries are important because they help to keep track of the movement of funds between bank accounts. By recording these transactions in the cash book, a company can ensure that its accounts are accurate and up-to-date. Additionally, contra entries can also be used to reconcile bank accounts, which is the process of comparing the balances of the cash book with the bank statements to ensure that they match.
Basic Concept of Contra Entry, what are the conditions for Contra entry, the transaction's details in which we pass Contra Entry, effects of Contra entry and recording of Contra Entry in Cash Book
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[@saleemfarooq3021]

Very informative and good description of your message is for students & me also

[@AccountingforAll]

Thanks sir

[@saleemfarooq3021]

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[@jibranali5852]

Great method
Simple way

[@AccountingforAll]

Thanks dear

[@rajamuhammadrehan6904]

Thank you so much for this educational video, I learned so much.

[@AccountingforAll]

Glad it was helpful!

[@touseefmehmood8003]

Easily understandable lecture

[@AccountingforAll]

Thanks dear

[@kinzasafeer]

Good, now i m able to enter the transaction in cash book which effects the both sides of the cash book

[@AccountingforAll]

Yes you can