What is the meaning of a contra entry?

Accounting
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meaning of contra entry

Dec 13th, 2015

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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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Dec 13th, 2015

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Dec 13th, 2015
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