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प्रश्न
What is contra entry? How can you deal this entry while preparing double column cash book?
उत्तर
The transaction that is entered in either sides of the double-column or three column cash book, affecting both cash and the bank balances concomitantly is called contra entry.
These entries result in increase in cash balances and decrease in bank balances or vice versa.
In other words, a debit of bank account leads to a credit of cash account and a credit of bank account leads to a debit of cash account.
For example, Rs 200 cash deposited into bank.
This transaction increases the bank amount on one hand; whereas, on the other hand reduces the cash balance.
In this entry, in the debit side of the cash book, ‘Cash’ will be recorded with a balance of Rs 200 in the bank column and in the credit side of the cash book, ‘Bank’ will be recorded with a balance of Rs 200 in the cash column.
This entry is a contra entry as it affects both cash and bank balance together. The contra entries are denoted by ‘C’.
Some transactions that lead to contra entry are given below.
1. Opening a bank account
2. Depositing cash into bank
3. Withdrawal from bank
These transactions are recorded in a double-column Cash Book as done below.
| Dr. | Cash Book | Cr. | |||||||
| Date | Particulars | L.F. | Cash Rs | Bank Rs | Date | Particulars | L.F. | Cash Rs | Bank Rs |
| Cash | (C) | - | Bank | (C) | - | ||||
APPEARS IN
संबंधित प्रश्न
Briefly state how the cash book is both journal and a ledger
What is the purpose of contra entry?
What is petty cash book? How it is prepared?
What do you understand by Imprest amount in petty cash book?
What is cash book? Explain the types of cash book
What is petty cash book? Write the advantages of petty cash book?
Enter the following transactions in a simple cash book for December 2016:
| ₹ | ||
| 01 | Cash in hand | 12,000 |
| 05 | Cash received from Bhanu | 4,000 |
| 07 | Rent Paid | 2,000 |
| 10 | Purchased goods Murari for cash | 6,000 |
| 15 | Sold goods for cash | 9,000 |
| 18 | Purchase stationery | 300 |
| 22 | Cash paid to Rahul on account | 2,000 |
| 28 | Paid salary | 1,000 |
| 30 | Paid rent | 500 |
Enter the following transaction in Simple cash book for December 2017:
| ₹ | ||
| 01 | Cash in hand | 7,750 |
| 06 | Paid to Sonu | 45 |
| 08 | Purchased goods | 600 |
| 15 | Received cash from Parkash | 960 |
| 20 | Cash sales | 500 |
| 25 | Paid to S. Kumar | 1,200 |
| 30 | Paid rent | 600 |
Record the following transactions in a bank column cash book for December 2016:
| ₹ | ||
| 01 | Started business with cash | 80,000 |
| 04 | Deposited in bank | 50,000 |
| 10 | Received cash from Rahul | 1,000 |
| 15 | Bought goods for cash | 8,000 |
| 22 | Bought goods by cheque | 10,000 |
| 25 | Paid to Shyam by cash | 20,000 |
| 30 | Drew from Bank for office use | 2,000 |
| 31 | Rent paid by cheque | 1,000 |
Prepare a double column cash book with the help of following information for December 2016:
| ₹ | ||
| 01 | Started business with cash | 1,20,000 |
| 03 | Cash paid into bank | 50,000 |
| 05 | Purchased goods from Sushmita | 20,000 |
| 06 | Sold goods to Dinker and received a cheque | 20,000 |
| 10 | Paid to Sushmita cash | 20,000 |
| 14 | Cheque received on December 06, 2010 deposited into bank | |
| 18 | Sold goods to Rani | 12,000 |
| 20 | Cartage paid in cash | 500 |
| 22 | Received cash from Rani | 12,000 |
| 27 | Commission received | 5,000 |
| 30 | Drew cash for personal use | 2,000 |
Enter the following transaction in a double column cash book of M/s.Mohit Traders for January 2017:
| ₹ | ||
| 01 | Cash in hand | 3,500 |
| Bank overdraft | 2,300 | |
| 03 | Goods purchased for cash | 1,200 |
| 05 | Paid wages | 200 |
| 10 | Cash sales | 8,000 |
| 15 | Deposited into bank | 6,000 |
| 22 | Sold goods for cheque which was deposited into bank same day | 2,000 |
| 25 | Paid rent by cheque | 1,200 |
| 28 | Drew from bank for personal use | 1,000 |
| 31 | Bought goods by cheque | 1,000 |
Prepare double column cash book from the following transactions for the year August 2017:
| ₹ | ||
| 01 | Cash in hand | 17,500 |
| Cash at bank | 5,000 | |
| 03 | Purchased goods for cash | 3,000 |
| 05 | Received cheque from Jasmeet | 10,000 |
| 08 | Sold goods for cash | 7,000 |
| 10 | Jasmeet's cheque deposited into bank | |
| 12 | Purchased goods and paid by cheque | 20,000 |
| 15 | Paid establishment expenses through bank | 1,000 |
| 18 | Cash sales | 7,000 |
| 20 | Deposited into bank | 10,000 |
| 24 | Paid trade expenses | 500 |
| 27 | Received commission by cheque | 6,000 |
| 29 | Paid Rent | 2,000 |
| 30 | Withdrew cash for personal use | 1,200 |
| 31 | Salary paid | 6,000 |
M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand ₹ 1,354 and balance in bank current account ₹ 7,560. He had the following transaction in the month of July 2017:
| ₹ | ||
| 03 | Cash sales | 2,300 |
| 05 | Purchased goods, paid by cheque | 6,000 |
| 08 | Cash sales | 10,000 |
| 12 | Paid trade expenses | 700 |
| 15 | Sales goods, received cheque (deposited same day) | 20,000 |
| 18 | Purchased motor car paid by cheque | 15,000 |
| 20 | Cheque received from Manisha (deposited same day) | 10,000 |
| 22 | Cash Sales | 7,000 |
| 25 | Manisha's cheque returned dishonoured | |
| 28 | Paid Rent | 2,000 |
| 29 | Paid telephone expenses by cheque | 500 |
| 31 | Cash withdrawn for personal use | 2,000 |
Prepare bank column cash book
Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000.
| January | ₹ | |
| 01 | Paid cartage | 50 |
| 02 | STD charges | 40 |
| 02 | Bus fare | 20 |
| 03 | Postage | 30 |
| 04 | Refreshment for employees | 80 |
| 06 | Courier charges | 30 |
| 08 | Refreshment of customer | 50 |
| 10 | Cartage | 35 |
| 15 | Taxi fare to manager | 70 |
| 18 | Stationery | 65 |
| 20 | Bus fare | 10 |
| 22 | Fax charges | 30 |
| 25 | Telegrams charges | 35 |
| 27 | Postage stamps | 200 |
| 29 | Repair on furniture | 105 |
| 30 | Laundry expenses | 115 |
| 31 | Miscellaneous expenses | 100 |
Record the following transactions during the week ending Dec.30, 2014 with a weekly imprest ₹ 500.
| January | ₹ | |
| 24 | Stationery | 100 |
| 25 | Bus fare | 12 |
| 25 | Cartage | 40 |
| 26 | Taxi fare | 80 |
| 27 | Wages to casual labour | 90 |
| 29 | Postage | 80 |
