Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 29)
How are contra entries handled in the sales and purchase ledgers?
They are recorded only in the purchases ledger.
They are recorded only in the sales ledger.
They are recorded in both the sales and purchases ledgers.
They are ignored
Explanation
Contra entries involve transactions between a company and a customer who is also a supplier, requiring entries in both ledgers.
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