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Question
Which of the following is recorded as contra entry?
Options
Withdrew cash from bank for personal use
Withdrew cash from bank for office use
Direct payment by the customer in the bank account of the business
When bank charges interest
Solution
Withdrew cash from bank for office use
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RELATED QUESTIONS
A cash book with discount, cash and bank column is called ______.
In Triple column cash book, the balance of bank overdraft brought forward will appear in ______.
If the debit and credit aspects of a transaction are recorded in the cash book, it is ______.
Enter the following transactions in the three column cash book of Kalyana Sundaram.
| 2017 Jan. |
||
| 1 | Balance in hand | 42,500 |
| Balance at bank | 35,000 | |
| 3 | Received for cash sales | 15,700 |
| 4 | Cash paid into bank | 11,500 |
| 6 | Cash purchases | 14,300 |
| 9 | Received dividend directly by the bank through ECS | 2,000 |
| 10 | Pongal advance to staff paid through bank | 17,000 |
| 12 | Received cash from Nagarajan | 11,850 |
| and allowed him discount | 150 | |
| 17 | Paid Magesh in full settlement of his account ` 20,000 | 19,700 |
| 20 | Cash withdrawn for personal expenses | 20,000 |
| 30 | Withdrawn cash from ATM for office use | 1,500 |
Record the following transactions in the three column cash book of John.
| 2017 Dec. |
₹ | |
| 1 | Cash balance brought forward | 12,600 |
| 1 | Bank overdraft brought forward | 36,000 |
| 1 | Advance paid to petty cashier by cheque | 3,000 |
| 5 | Goods sold for cash | 12,000 |
| 7 | Dividend on shares collected by the banker | 1,000 |
| 13 | Cash paid into Bank | 10,000 |
| 14 | Interest charged by the bank for bank overdraft | 1,500 |
| 18 | Cheque issued to Siddique | 8,000 |
| Discount received from him | 200 | |
| 24 | Insurance claim received by cheque and deposited into bank | 17,000 |
| 28 | Cash received from Baskar | 15,000 |
| Discount allowed to him | 150 | |
| 31 | Deposited into Bank all cash excess of ₹ 18,600 |
Prepare a triple column cash book of Rahim from the following transactions:
| 2017 Feb. |
||
| 1 | Cash in hand | 25,000 |
| Cash at bank | 10,000 | |
| 5 | Water purifier purchased for office use by cheque | 8,000 |
| 6 | Purchased goods for cash | 9,000 |
| 8 | Received cash from Daniel | 9,900 |
| Discount allowed to him | 100 | |
| 10 | Cheque received for goods sold and deposited in the bank | 40,000 |
| 12 | Paid to Amala by cheque | 14,500 |
| Discount received from her | 500 | |
| 13 | Paid transport charges by cash | 5,000 |
| 14 | Withdrawn cash from bank for office use | 20,000 |
| 24 | Cheque received from Kumar and deposited into the bank | 15,000 |
| 28 | Kumar’s cheque dishonoured |
What is three column cash book?
Brifly explain about contra entry with examples.
