Login

 what is contra entry for cheque dishonour and office use ................plz reply urgently

The contra entries are those entries in which both Cash Account as well as Bank Account are involved. In words, the transaction that affects both cash and bank are referred as contra entries. For example, cash deposited into bank. The Journal entry for this is as follows. 

Bank A/c  Dr.

 To Cash A/c 

In your query, the Journal entry for cheque dishonour and amount withdrawn from bank for office use would be as follows.

Customers' A/c  Dr.

 To Bank A/c

(Cheque dishonoured)

It should be noted that it is not a contra entry.

The Journal entry for would be as follows.

Cash A/c  Dr.

 To Bank A/c

(Amount withdrawn from bank for office use)

  • 2
View Full Answer

bank a/c................. dr.

  to cash a/c

  • 3

 bank a/c..... debit.

  to cash a/c

 

  • 4

to cash a/c

  • -1

 i think it is

bank a/c ..................dr.

to cash a/c

  • 1

@ antima, the entry would be

customer's a/c..........dr

       to  bank a/c.

(being cheque recieved from customer / debtor dishonoured)

 THE REASON FOR THIS ENTRY IS:-

when u recieve a cheque frm a debtor ( say ram) and it is not deposited on the same day in bank it is treated as cash. So, entry will be:-

               Cash a/c ...............dr.

                       to ram

and when this cheque is deposited afterwards, it is obvious that our bank balance will increase and cash which was debited above will decrease. so, entry is:-

                        Bank .............dr

                           to cash a/c

but it is dishonoured so, both entries will be just opp, i.e, dr. becums cr. and cr. becomes dr. 

   after that cash will have no effect as will just cancel out and the left and final entry of ur query is:-

                                  Ram...................dr

                                          to bank a/c.

Hope u now understood...

  • 5

contra entry means entries which r entered both in bank column or cash column...........

(1) bank a/c    dr.

     to cash a/c 

                                or

(2)cash a/c     dr.

      to bank

in the first entry bank is getting debit so it will come in receipt side (or dr side of cash book) *by bank* and the figures(the amount)  will appear in cash column of receipt side...........and *to cash* will appear in payment side (or cr. side of cash book) and the figures will appear in bank column of payment side......................

in the second entry u will write just the vice versa!!!!

u getting it?

  • 0

Hello Dear!



My name is Kate,



I saw your profile and would like to get in touch with you If you're


interested in me too then please send me a message as quickly as possible.


(kateelliot19@yahoo.com)


Greetings


Kate


  • -1
What are you looking for?