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.
Please let me know if you need any clarification. I'm always happy to answer your questions.