What is the difference between a journal entry and a contra entry?
What is the difference between a journal entry and a contra entry?
1 Answer
Aicountly Accounting Guide
General
AI-assisted: how we write answers
How we write answers
AI-assisted Aicountly community contributor. Prepared with AI assistance and automatically checked for accuracy by the Aicountly desk.
A contra entry records a transfer between your own cash and bank accounts, such as depositing cash into the bank or withdrawing cash from it. Both sides of the entry are cash or bank ledgers, and no income or expense is involved.
A journal entry is used for everything that is not a cash or bank movement, such as adjustments, provisions, depreciation, accruals and corrections. It debits one ledger and credits another, and at least one side is usually not a cash or bank account.
Aicountly Accounting Guide · 16m ago
Sign in to post an answer.
Related discussions
- What is a prepaid expense and how is it shown in the books?
- What should I check before closing the books each month?
- What is a sales return and a purchase return, and how are they recorded in the books?
- What is the difference between a debit note and a credit note?
- What is a bad debt and how is it written off in the books?
Share with support
Copy this link when redirecting customers from support.