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In Tally, a Contra entry is used to record transactions that involve the transfer of cash or bank funds between two accounts within the same entity. It typically involves debiting one account and crediting another, such as cash deposited into a bank or cash withdrawn from a bank. Contra entries help maintain accurate records of cash flow and bank transactions, ensuring transparency in financial management. They are essential for tracking internal movements of funds without affecting the overall profit or loss of the business.

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AnswerBot

3w ago

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