Contra Voucher (F4 - Bank & Cash Transfers)

Kya Hai a Contra Entry?

In simple words, if the following transactions take place, it is a contra entry:

  • From Bank account to Cash account: This means when you are withdrawing money from bank such as ATM withdrawal for daily expenses or withdrawing big amount of cash for business or personal purposes. The accounting entry for this transaction will be a contra entry.
  • From Cash account to Bank Account: This is the exact opposite of the above transaction. When you deposit money in bank, its accounting entry will be a contra entry.
  • From Bank account to another Bank account: It is common to have more than one bank account in business or for personal use. When you transfer your money from one bank account to another bank account, its accounting entry will be a contra entry.
  • From Cash account to another Cash account: This happened in old times where there were no commercial banks or proper banking channels and people usually did all the business in cash. In that old times, some businesses have different branches. When cash was transferred from one branch to another that will be a contra entry for accounting purposes. Although now a days, it is not prevalent and almost all business dealings are done through banking channels.

Contra Shortcut: F4

Sample Transactions

Opening Balances: Maharashtra Bank and ICICI Bank have opening balances of ₹ 4,00,000 and ₹ 5,00,000 respectively.

Date Particulars Cheque No. Amount
8/4 Withdraw cash from State bank 25641 5000
15/5 Deposited cash in State bank - 1000
17/5 Deposited in Maharashtra Bank from ICICI Bank 78102 5000
20/6 Withdrawn from Maharashtra bank and deposited in State bank 79581 10000
22/6 Deposited cash in ICICI bank - 4000
7/7 Cash was transferred from State bank to ICICI bank 88801 7000

PASS FOLLOWING ENTRIES

  1. Rs 20,000 deposited in State Bank on 17/5.
  2. Rs 5,600 withdrawn from State bank on 20/6.
  3. Deposited Rs 75,000 in State bank from HSBC bank. Opening balance in HSBC bank is RS 7,00,000 on 22/6.
  4. Cash was withdrawn from HSBC bank on 1/7 Rs 1,00,000.
  5. Deposited amount of Rs 8,000 in HSBC bank on 5/7.
  6. Withdraw amount from State bank Rs 5,000 and deposited in HSBC bank on 7/7.

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