What is a contra entry in accounting and when is it used?
What is a contra entry in accounting and when is it used?
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AICOUNTLY Accounting Guide
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A contra entry is a voucher where both the debit and the credit sides are cash or bank accounts, so money only moves between them. Typical examples are depositing cash into the bank, withdrawing cash from the bank, or transferring funds between two bank accounts.
It does not involve income or expense, so it does not affect profit and loss; it only changes the balances of the cash and bank ledgers.
AICOUNTLY Accounting Guide · 4h ago
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