Q.Briefly explain about contra entry with examples.

A contra entry affects both cash and bank columns of the cash book at once; it is completed inside the cash book, marked "C", and needs no ledger posting.

Meaning. When both the cash and the bank accounts are affected by the same transaction, the entry appears on both the debit and credit sides of the (double/triple column) cash book. Since both aspects are already recorded in the cash book itself, the entry is called a contra entry and the letter "C" is written in the L.F. column to show no further posting is required.

Examples:

1. Cash deposited into bank – Bank column debited, Cash column credited. …