Contra Entry
Also called: contra transaction
What is Contra Entry?
A contra entry records a movement between a business's own accounts — cash deposited into the bank, cash withdrawn for the till, or a transfer between two bank accounts. Nothing is earned or spent.
Why Contra Entry matters
Contra entries are frequently miscoded as income or expense, which inflates both sides of the P&L. A shop depositing daily takings can double-count an entire month's revenue this way.
How Contra Entry works in practice
Post them as transfers between asset accounts, never through income or expense. In a cash book they appear on both sides, which is why they are marked as contra rather than totalled.
Worked example
Depositing ₹50,000 of takings debits the bank and credits cash in hand — no revenue is recorded.
Frequently asked questions
No. The income was recorded when the sale happened; the deposit only moves money between your own accounts.