Q.What is a Contra Entry in a Triple Column Cash Book? Give two examples and explain why it requires no posting to any ledger account.

A contra entry records a transfer of money between the firm's own cash and its own bank account, and is self-contained within the Cash Book.

A Contra Entry arises whenever a transaction moves money from the firm's cash to its own bank account, or from its bank account to its own cash — no outside party is involved at all. Two common examples:

1. Cash deposited into the Bank — the Cash column is credited (cash goes out of hand) and the Bank column is debited (the bank balance rises) within the SAME Cash Book.
2. Cash withdrawn from the Bank for office use — the Bank column is credited (bank balance falls) and the Cash column is debited (cash-in-hand rises), again within the same Cash Book. …

Students sometimes look for a 'Contra Account' to post to in the ledger — no such posting is ever needed or exists; the 'C' marking itself is the signal that bo …