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JAMB Principles of Accounts 2008 Question 10

Question 10

Cash Book

An entry made in the bank column of the cash book to record movement of cash between the office and the bank is the

  1. A.real entry
  2. B.special entry
  3. C.direct entry
  4. D.contra entry
Show the answer and explanation

Answer: D (contra entry)

Explanation

When cash is paid into or drawn from the bank, both sides of the entry are in the cash book itself: a contra entry.