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An entry made in bank column of cash book to record movement of cash between the...


Question

An entry made in bank column of cash book to record movement of cash between the office and the bank is the

Options

A)
real entry
B)
special entry
C)
direct entry
D)
contra entry

The correct answer is D.

Explanation:

As per the accounting principles, a contra entry is a transaction involving transfer of cash between one cash A/c to another or one cash A/c to another bank A/c i.e., is a transaction indicating transfer of funds from : * Cash account to bank account. * Bank account to cash account.

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Dicussion (1)

  • As per the accounting principles, a contra entry is a transaction involving transfer of cash between one cash A/c to another or one cash A/c to another bank A/c i.e., is a transaction indicating transfer of funds from : * Cash account to bank account. * Bank account to cash account.

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