Multiple choice

Directions: Choose the correct option for the given question.

Which of the following transactions attracts contra entry in the three column cash book?

  1. Withdrawal from bank for office use

  2. Withdrawal from bank for personal use

  3. Withdrawal from office for personal use

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A contra entry occurs when a transaction affects both the cash and bank columns of the cash book simultaneously, such as depositing cash into the bank or withdrawing cash from the bank for office use.

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