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Question
Answer the following question in one sentence:
State the meaning of 'Contra entry'.
Solution
Certain transactions affect cash account and bank account simultaneously but with the opposite effect. They are to be recorded on both sides of the cash book. Entries of this kind of transaction are known as Contra entry.
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RELATED QUESTIONS
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
Any entry recorded on both sides of Cash Book is known as ______ entry
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
Direct deposit made by customer into our bank is recorded in the ______ side of the Cash Book.
Complete the following sentence:
Double column Cash Book records transactions relating to cash and ______
Complete the following sentence:
Credit balance shown by a bank column in Cash Book is ______
Correct the following sentences and rewrite the same:
Cash Book records cash trnasactions as well as credit transactions.
| Opening cash Balance | Cash Receipts | Cash Payments | Total cash | |||
| ? | + | 60,000 | - | 45,000 | = | 23,000 |
Prepare a two-column Cash Book from the following transaction for the year July 2018.
| July 2018 | Amt (₹) | |
| 01 | Cash in hand | 17,500 |
| 01 | Cash at Bank | 5,000 |
| 03 | Purchased goods for cash | 3,000 |
| 05 | Received cheque from Arun | 10,000 |
| 08 | Sold goods for cash | 8,000 |
| 10 | Arun’s cheque deposited into the 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 General Expenses | 500 |
| 27 | Received commission by Cross cheque | 6,000 |
| 29 | Paid Rent | 2,000 |
| 30 | Withdrew cash for personal use | 1,200 |
| 31 | Wages paid | 6,000 |
