All 26 Cash Book & Petty Cash questions
More in Cash Book & Petty Cash
What is a two-column versus three-column difference in one line? Why must cash receipts be banked promptly? What is the imprest system for petty cash? How is the petty cash book reimbursed and posted? How do discounts allowed and received appear in the three-column cash book? What internal controls apply to cash and petty cash handling? What entries arise from bank charges, interest, and standing orders in the cash book? Why might the petty cash book not balance and how do you investigate? How is the receipt of capital or a loan recorded in the cash book? How are drawings recorded in the cash book?
Advertisement
Back to results for “Cash Book & Petty Cash”
Bookkeeping › Cash Book & Petty Cash

What is a contra entry in the cash book?

Intermediate

Answer

A contra entry records a transaction affecting both the cash and bank columns of the same cash book—typically paying cash into the bank or drawing cash from the bank. Both sides of the entry appear in the cash book (one column debited, the other credited), marked with a 'C' to show no other ledger posting is needed.
Pay 300 cash into bank:
  Cr Cash column 300 (money out of till)
  Dr Bank column 300 (money into bank)  -- marked C
Real-world example Banking the day's takings is a contra entry moving money from the cash column to the bank column.

Common follow-ups: Why is a contra marked 'C'? | Does a contra need a nominal ledger posting?

Bank Reconciliation Books of Prime Entry Cash Book & Petty Cash
All 26 Cash Book & Petty Cash questions