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WAEC Financial Accounting 2013 Question 2

Question 2

Cash Book

The lodgement of business cash into the business bank account is an example of

  1. A.contra entry.
  2. B.bank reconciliation.
  3. C.self-balancing ledger.
  4. D.reversal entry.
Show the answer and explanation

Answer: A (contra entry.)

Explanation

Both sides of the entry are in the cash book (credit cash column, debit bank column), so it is a contra entry.