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If the debit and credit aspects of a transaction are recorded in the cash Book it is a :
- a)Contra entry
- b)Simple entry
- c)Double entry
- d)Single entry
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
If the debit and credit aspects of a transaction are recorded in the c...
Contra Entry in Cash Book:
A contra entry is a type of entry that records both debit and credit aspects of a transaction in the cash book. It is called a contra entry because it cancels or offsets each other. This type of entry is also known as a cash transaction.
Explanation:
When a cash transaction occurs, the cash book records both debit and credit aspects of the transaction. For example, when cash is withdrawn from the bank, the cash book records the following entries:
Debit aspect: Cash Account - To record the withdrawal of cash.
Credit aspect: Bank Account - To record the reduction in the bank balance.
This entry is called a contra entry because it cancels each other. Here, the cash account is debited, and the bank account is credited.
Conclusion:
The correct option for the given question is option 'A,' Contra entry, because it records both debit and credit aspects of a transaction in the cash book.
A contra entry is a type of entry that records both debit and credit aspects of a transaction in the cash book. It is called a contra entry because it cancels or offsets each other. This type of entry is also known as a cash transaction.
Explanation:
When a cash transaction occurs, the cash book records both debit and credit aspects of the transaction. For example, when cash is withdrawn from the bank, the cash book records the following entries:
Debit aspect: Cash Account - To record the withdrawal of cash.
Credit aspect: Bank Account - To record the reduction in the bank balance.
This entry is called a contra entry because it cancels each other. Here, the cash account is debited, and the bank account is credited.
Conclusion:
The correct option for the given question is option 'A,' Contra entry, because it records both debit and credit aspects of a transaction in the cash book.
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Community Answer
If the debit and credit aspects of a transaction are recorded in the c...
Contra entry because in Debit and credit are cash and cash equivalent. example.
cash deposit in bank.
journal entry
Bank A/C dr.
To Cash A/C
cash deposit in bank.
journal entry
Bank A/C dr.
To Cash A/C
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