Cash entry
Contra entry
Payment entry
Compound entry
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Answer is Wrong!
The correct answer is: B. Contra entry
A contra entry is
an entry that is made on both sides of a cash book. It is used to offset two different transactions that have the same effect on the cash balance. For example, if you deposit a check into your account and then write a check to pay a bill, the two transactions will cancel each other out and your cash balance will not change.A cash entry is an entry that is made in the cash book to record a transaction that involves cash. For example, if you deposit a check into your account, you would make a cash entry in the cash book.
A payment entry is an entry that is made in the cash book to record a transaction that involves a payment. For example, if you write a check to pay a bill, you would make a payment entry in the cash book.
A compound entry is an entry that is made in the cash book to record a transaction that involves more than one account. For example, if you buy a car with a loan, you would make a compound entry in the cash book to record the purchase of the car and the loan.
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