What is contra Entry

Question

Accepted Answer

A contra entry is a bookkeeping entry that offsets the effect of a previous entry in order to correct errors or adjust balances.

Contra entries are used to reverse or cancel out a previous entry in the accounting records.
They are typically used to correct errors, adjust balances, or record transactions that involve internal transfers.
Contra entries are recorded in the opposite account to the original entry, effectively nullifying its impact.
For example, if a company accidentally records a payment twice, a contra entry can be made to reverse one of the payments.
Contra entries are important for maintaining accurate financial records and ensuring the integrity of the accounting system.

Accepted Answer

Contra Entry is an Double entry system it is an cash and Bank

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