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Dr Cash Book with Cash and Bank Column Cr
Date Particulars LF Cash Bank Date Particulars LF Cash Bank
Contra Entry
Contra entry appears while preparing double column cash book with bank column
and triple column cash book. When a transaction affects both sides (i.e. Debit and
Credit) of double and triple column cash book by equal amount on same date, it is
known as Contra Entry. In such case, the transaction is recorded in the cash column
on one side and in bank column on the other side. Contra entry is denoted by letter
“C” and it occurs in case of following two transactions:
i. While depositing cash into bank
ii. While drawing cash from bank for office use.
12. From the given information, prepare double column cash book with
cash and bank column for the month of August.
August 1 : Cash balance Rs. 15,000 and bank balance Rs. 8,000
August 2 : Goods of Rs. 2,000 purchased on cash
August 5 : Cash Rs. 4,000 deposited into bank
August 7 : Rent paid Rs. 1,000 through cheque
August 8 : Goods of Rs. 3,000 sold to Dinesh
August 9 : Cash Rs. 3,000 drawn for office use from bank
August 13 : Dinesh paid Rs. 2,950 in full settlement
August 15 : A cheque of Rs. 1,150 deposited in bank for the interest income
August 19 : A cheque of Rs. 4,000 issued to Mahesh
166 Office Practice and Accounting 9
