Bello withdraws cash from bank to office, this is called ———- entry

JAMB Accounting 2023 75 views

Bello withdraws cash from bank to office, this is called ———- entry

  1. credit
  2. contra ✓
  3. debit
  4. double

Explanation

Contra entry appears on both sides of the cashbook when transferring between cash and bank. Withdrawing from bank to office creates: Debit cash column, Credit bank column. Both are in the same book.

It’s not just a credit or debit, but both. All entries are double entries. “Contra” specifically means an offsetting entry within the cashbook itself.

Remember: Contra = internal transfer between cash and bank columns in cashbook.

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