How are contra entries done in the cash books?

Banking & FinanceFinance ManagementGrowth & Empowerment

Refer the data given below −

Transactions

Aug 1       Bank balance b/d                                        $28000

Aug 1       Cash balance                                              $1200

Aug 3       Paid cheque for laptop                                $1050

Aug 11    Cash withdrawn from bank for office use     $700

Aug 13    Paid cash for paper                                      $450

Aug 14    Banked cash sales                                       $3800

Aug 21    Wages paid                                                   $1500

Aug 24    Cash withdrawn from bank for office use      $800

Aug 26    Banked cash sales                                        $3500

Aug 27    Paid for materials by cheque                        $950

Aug 29    Paid for services by cash                              $500

Aug 30    Wages paid by transfer                                  $1300

Solution

The solution for contra entries in cash books, based on the above mentioned data is as follows −

DATE
Description
LF
Cash
Bank
DATE
Description
LF
Cash
Bank
Aug 1
Balance b/d


1200
28000
Aug 3
Laptop




1050
Aug 11
Bank
C
700


Aug 11
cash
C


700
Aug 14
Cash sales




3800
Aug 13
Paper


450


Aug 24
Bank
C
800




Aug 21
Wages




1500










Aug 24
Cash
C


800










Aug 27
Materials




950










Aug 29
Services


500












Aug 30
Wages




1300










Aug 31
Balance c/d


1750
25500






2700
31800






2700
31800

Here, C = contra entries

raja
Published on 09-Jul-2021 12:13:41
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