Accounting for IGCSE & O level - Accounting Procedures (Section 23 - No. 22)
What is a contra entry?
An entry made to correct an error.
An entry made to reverse a transaction.
An entry recorded in both the sales and purchases ledgers relating to the same customer/supplier.
An entry made to record a cash transaction.
Explanation
A contra entry involves a transaction where a customer is also a supplier and is recorded in both ledgers.
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