20 February 2009
Dear sir, i need a clarification about Contra entry.Cash wihdrawal from the bank.for that we should pass contra entry. but they passed bank payment entry instead of contra.Is it correct?...
Entry in bank payment as: Cash to Bank. It will give the same effect.Then what is the purpose of Contra??... Explain and give the effect also...
1. Contra Entry is required in the following cases:
a. Cash Drawn from Bank for office use. b. Cash Deposited into Bank Account c. Fund Transferred from One Bank Account to Another Bank Account of the same Company.
2. Cash Withdrawal - should not pass payment entry.
A. Sankaranarayana 9448144025 asankaranarayana@gmail.com
CAclubindia
