A contra entry is a check that is received and deposited into the bank on the same day.
Both the cash and bank columns are present in the cash book. If a check is received and deposited the same day, it should be noted in the cash book's bank column. Debtors' accounts are credited and the Cash account is debited when checks from debtors are received but not deposited in the bank. Customer accounts were credited at the time of receiving checks, so if a check fails, a reversal entry must be made by debiting the customer accounts and crediting the bank accounts. From the time you deposit the check until the funds are available as cleared funds in your account, it usually takes three business days.
Learn more about account from
brainly.com/question/1287000
#SPJ4
