What is the meaning of a contra entry?

timer Asked: Dec 13th, 2015
account_balance_wallet $5

Question Description

meaning of contra entry

Tutor Answer

School: Boston College

Thank you for the opportunity to help you with your question!

It is basically a readjustment entry and does not effect your net balance. The transaction is usually marked with capital C meaning Latin word contra. No contra or cross entry is made in the ledger book, it's just in the cash book. Cash book is debited as well as credited. The net effect is zero. Cash balance increases and bank balance decreases. The letter 'C' is entered in the L/F (ledger folio) column.

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