Contra is a latin word which shows that cash has been withdrawn from the office and deposited in the bank or withdrawals of cash from bank for office use. It is an entry involving the payment of cash into the bank and is denoted by “C” in the folio column.

It may simply be defined as the transfer of an account to the identical side of another account.

  1. Payment of cash to bank.

When too much cash is in the office, the whole or part of it can be paid into the bank.

Effect                                                           Action Required

Cash balance is decreased                          Cr. Cash column

Bank balance is increased                            Dr. Bank column

E.g: Jan. 1 cash balanced N300

Jan. 2 cash paid into the bank amounted to N710

Dr                                            Cash Book                                         Cr

Date Particulars Folio Cash Bank Date Particulars Folio Cash Bank
Jan. 1 Cash C 300 Jan. 1 Bank C 300
Jan. 2 Cash C 710 Jan. 2 Bank C 710


Note: “C” must be put on both sides to represent contra entry.


  1. Withdrawals from bank for office use.

When there is no sufficient cash in the office to meet payments, cash can be withdrawn from bank. When this occurs, the effect and action will be started below.

Effect                                                 Action Required

Bank balance will decrease                Cr. Bank column

Cash balance will increase                 Dr. Cash column

E.g: Jan. 4 withdrew cash N800 from bank for office use.

Dr                                                                                                      Cr

Date Particulars Folio Cash Bank Date Particulars Folio Cash Bank
Jan. 4 Bank C 800 Jan. 4 Cash C 800


See also


Single Column Cash Book

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