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A contra payment occurs where you owe money to someone, but they also owe money to you, therefore the debt of the person owing the lower amount is cancelled, the other only needs to pay the difference, and it all comes out even.
In accounting software you might set up a "contra account" to be able to handle such a transaction.
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What are the rules for posting the cash payment journal to the ledger?
credit bank, debit all contra accounts :)
Is a contra account a debit or a credit?
That depends, it could be either. a contra-asset account would be just the opposite of an asset. All assets have a debit balance (increase with debit) therefore a contra-asset account would be a credit. The same holds true with a contra-liability account, it is just the opposite, a liability maintains a credit balance (increases with a credit) therefore a contra-liability account would be a debit.
What is a contra entry in the sales ledger control account?
A contra entry occurs when one business both buys goods from, and sells goods to, one other business. Rather than making a payment for the full amount owed, and receiving a payment for the full amount due, only the difference between the two amounts actually exchanges hands; this is known as contra accounting. The contra entry is shown as follows: The first business has a debit entry in the sales ledger and a credit entry in the purchases ledger to the second business. The smaller of the two accounts (the debtor account and the creditor account of the same trader) is taken and posted to the opposite side of each respective amount, so that there is a credit entry in the sales ledger and a debit entry in the purchases ledger. (The amount posted to both accounts is actually the contra.) This will effectively close the account with the smaller amount leaving the trader either a debtor or a creditor to the other business. The amount that the trader either still owes or is owed is the larger of the accounts minus the smaller transferred amount. It can happen, in very rare cases, that a contra closes both the credit and the debit account if both the amount owed and the amount owing are exactly the same size.
What is a typical number for a contra account?
Contra Accounts are typically numbered near or right after the normal account. 5010 Revenue 5011 Returns
Is a contra account balance a debit or credit?
A contra account balance is a debit balance account. It is a general ledger account that has a balance that is an exact opposite of a normal balance. Contra accounts are generally used to report the gross and the net amount of an organization.
What are the rules for posting the cash payment journal to the ledger?
credit bank, debit all contra accounts :)
Do you have Contra Funds in India?
Some of the leading Contra Funds available for us to invest are: 1. ING Contra Fund 2. Kotak Contra Fund 3. L & T Contra Fund 4. SBI Magnum Sector Funds Umbrella - Contra 5. TATA Contra Fund 6. UTI Contra Fund and 7. Religare Contra Fund
What has the author Contra written?
Contra. has written: 'Kesmasolin'
When was Contra - album - created?
Contra - album - was created in 2009.
When was Contra Conspiracy created?
Contra Conspiracy was created in 1988.
When did Contra Force happen?
Contra Force happened in 1992.
When was Contra Tiempo created?
Contra Tiempo was created in 2010.
What is the population of Tenero-Contra?
The population of Tenero-Contra is 2,380.
When was Super Contra created?
Super Contra was created in 1988.
When did Super Contra happen?
Super Contra happened in 360.
When did Neo Contra happen?
Neo Contra happened in 2004.
When did Contra ReBirth happen?
Contra ReBirth happened in 2009.
