what do you mean by contra entry? and where it is used?
Answer Posted / nolly ughanze
It is a bookkeeping entry that is entered on the opposite
side of an earlier entry to cancel its effect on the
account balance
It is better to say Contra is an adjustment entry, because
it doesn't affect your Net Cash Balance.(whether cash in
hand or bank, your current asset will be the same)
| Is This Answer Correct ? | 8 Yes | 10 No |
Post New Answer View All Answers
is anybody attended interview in ernst&young for EMS PROCESS , pls let me know abt the written test and what type of report writing
Short Answer on _____________Whole Sale Trade
why gross profit transfering to profit & loss account
You have joined company yesterday then you are Appling B1 visa today. why so urgent.
what is tds rate of WCT applay for sale tax ragistard company.
discounted our own note 60-18% for 4,500 note. the proceeds will be directly credited to bank account. what is the entry of this?
Meaning of portfolio management?
WHY LOSS IN BUSINESS IS SHOWN IN ASSETS SIDE OF BALANCE SHEET? WHY EXCISE DUTY IS DEDUCTED FROM THE GROSS SALES TO ARRIVE NET SALES? WHY SALES TAX IS NOT DEDUCTED FROM SALES TO ARRIVE NET SALES?
what is span of shares
What is the Memorandum voucher?
Interest earned on investments is an__________
What Is The Limitation Of Remuneration Allowed If Book Profit Is 375850 In A Business Firm And In A Professional Firm?
What Are The Characteristics Of Modern Accounting?
what is Rectification of Errors ?
From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.