Check sibling questions

Example

Suppose Rs 5000 cash withdrawn from ICICI Bank ATM on 1 August 

Entry will be

Cash Dr  5000

     To ICICI Bank 5000

Note:

It is a Contra Entry as Cash is debited and Bank is Credited

 

Always Pass in Double Entry

It is always better to pass Contra Entries in Double Entry to prevent wrong entries

 

Procedure for passing contra entries

F12 Configure --> Put Single Entry No --> Put Debit Credit Yes --> Enter Enter or Ctrl A

 

SUMMARY

We know that Contra Entry is of form

Cash Dr

        To Bank

Or

Bank Dr

     To Cash

 

Or

Bank 1

      To BANK 2

 

 

Relevant Groups while Creating Ledger

  • Bank is created under Group Bank Account,
  • Cash Account is already created in tally by default)

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CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.