The correct answer is: D. All of the above
A contra entry is an entry made on the opposite side of a ledger account to balance the account. Contra entries are often used in cashbooks to record transactions that affect both income and expenses, such as cash received from customers and cash paid to suppliers.
A petty cashbook is a small cashbook that is used to record small cash transactions. Petty cash transactions are often for items such as office supplies, postage, and travel expenses.
A simple cashbook is a cashbook that is used to record all cash transactions. Simple cashbooks are often used by small businesses and individuals.
A triple column cashbook is a cashbook that is used to record cash receipts, cash payments, and bank deposits. Triple column cashbooks are often used by larger businesses.
In all of these cases, contra entries are made to balance the cashbook. For example, if a business receives cash from a customer, the cash receipt will be recorded in the cash receipts column of the cashbook. The business will also need to record the income from the sale in the income column of the general ledger. To balance the cashbook, the business will make a contra entry in the cash payments column. The contra entry will be for the amount of the sale, and it will be offset by the income entry in the general ledger.
Contra entries are important because they help to ensure that the cashbook is accurate. By recording all cash transactions, including contra entries, businesses can be sure that their cash records are up-to-date and accurate.