December 29, 2022
Reddy Mohith

Contra Entry: Format, FAQs etc

People perform multiple transactions in their respective ways every day. Some might withdraw cash at an ATM. Some may transfer the money from their bank account to the other bank account, while others use digital payment platforms to maintain financial communication between two parties. So, the transactions that involve cash and a bank account are contra entry, and you need a contra voucher to carry out those. So, this article will guide you through everything you need to know about Contra entry.

What is a contra entry?

Contra entry refers to cash and bank account transactions. A contra entry is any transaction involving a cash transfer from one cash account to another, one cash account to a bank account, or one bank account to another. In other words, a contra entry is any transaction that affects cash and bank accounts. Contra means "opposite" in Latin. It is also known as a contra voucher.

The following are some examples of contra transactions:

1. Bank account to cash account

2. Cash account to bank account

3. Bank account to bank account

4. Cash account to another cash account

After reviewing the preceding list, it is complicated to understand the one mentioned at the end, Cash account to Cash account.

To clear it up, you need to learn a little more about the 'Petty Cash Account.' It is a standard business practice to keep a 'Petty Cash' account with less cash to cover minor expenses such as couriers, refreshments, stationery, and other expenditures.

Petty cash vouchers are used and paid from petty cash whenever such small expenses arise. The money gets transferred from the main account to the little cash account. Funding these cash accounts is referred to as a cash account to a cash account.

What is a cash book?

A cash book is a traditionally prepared book used to record contra entries with cash and bank columns, separated equally. Entering both transaction aspects in the same book is known as a contra book.

On the debit side of the contra book, enter 'To Cash A/c' in the particulars column and the amount in the bank column. On the credit side of the contra book, enter 'By Bank A/c' in the particulars column and the amount in the cash column.

Such contra entries are marked with the letter 'C' in the L.F. column on both sides of the cash book. They represent that no posting in the ledger is required in this regard.


Contra entries traditionally affect the cash and the bank accounts. All debit transactions with a Dr (debit side) on top will have a 'To.....' entry, whereas the destination account will have a Cr (credit side) on top of the column and a 'By......' entry.

You must pass two entries in a single-entry book when two accounts are affected from one account to another. As a result, the double entries method is used, in which transactions are recorded twice, side by side, to avoid confusion. The following picture will help you understand the format.

The Cash a/c and Bank a/c have columns for registering the R-Register, Cash, Ledger Folio (LF), and Bank columns, making it simple to mark cash trades with a C and show if money was withdrawn or placed in the respective a/c columns. When one account is marked C, it means cash, and the other receiving account is marked C, which means Contra entry.

Another impressive fact to recognize is that a cheque is a cash received and reflected in the bank-to-bank transfer contra entry. However, it tells that no record in the respective Ledger Folio is required when denoted as C while tallying.


  1. What are the various types of cash books?

There are two types of cash books:

  1. Petty cash book: This book maintains the records of the emergency reserve or the cash needed for daily expenses. Stationaries, office supplies, and others are some examples.
  2. Columnar cash book: This maintains the transactions in the petty cash book. It is also known as the contra voucher or contra book.
  1. How many types of cash books are there?

There are three kinds of cash books. They are:

  1. Single-column cash book
  2. Double-column cash book
  3. Triple-column cash book
  1. What is the primary rule of contra-entry?

Recording the credit and debit entries from the same parent account is the contra entry. Therefore, a contra entry should always impact cash and bank accounts.

  1. Is contra entry and contra transaction the same?

No, contra entry and contra transaction are not the same. Contra transaction, also a barter transaction, involves exchanging goods or services of the same value between two parties, and money is not involved here. On the other hand, the contra entry emphasizes deposits and withdrawals from the bank and cash accounts.

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