Contra entry Flashcards
1
Q
What is a Contra entry?
A
When a business is both a payable and receivable of another business
2
Q
What are the accounts of a contra entry?
A
DR PLCA ( and subsidiary purchases ledger) CR SLCA ( and subsidiary sales ledger)
3
Q
What would the accounts be for this example:
Comapny A owes Company B £400 and Company B owes Company A £200
You work for COmpany B
A
CR Contra entry £200
