In three column cash book, when does contra entry occurs? a) Withdrawal of cash from bank b) Payment - (a) Withdrawal of cash from bank Description: In case of three column cash book, when cash is withdrawn from bank for use in the office the amount is entered in the bank column in the payment side and also in the cash column on the receipt side. Such entries are called contra entries and a letter "C" should be written in front of such entries in the L.F. column. - Cash Books Interview Questions and Answers

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Question: In three column cash book, when does contra entry occurs? a) Withdrawal of cash from bank b) Payment to creditors c) Withdrawal of cash from bank for personal use d) All of the above

Answer: (a) Withdrawal of cash from bank
Description: In case of three column cash book, when cash is withdrawn from bank for use in the office the amount is entered in the bank column in the payment side and also in the cash column on the receipt side. Such entries are called contra entries and a letter "C" should be written in front of such entries in the L.F. column.

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Question: In three column cash book, when does contra entry occurs? a) Withdrawal of cash from bank b) Payment to creditors c) Withdrawal of cash from bank for personal use d) All of the above

Answer:

(a) Withdrawal of cash from bank
Description: In case of three column cash book, when cash is withdrawn from bank for use in the office the amount is entered in the bank column in the payment side and also in the cash column on the receipt side. Such entries are called contra entries and a letter "C" should be written in front of such entries in the L.F. column. Source: CoolInterview.com

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