Panic!! Contra Entries

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi Everyone

I thought I had Contra Entries sussed but having just been to college and had my lecturer explain them I am more confused than ever!!

I understand what a contra entry is but am soooo confused on the postings.

Can anybody help me please......... :cry:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Panic!! Contra Entries

    Hi

    Best way to sort them out, is to write out what has been done incorrectly, then write out how it should have been entered, then look at the 2 scenarios and work out how to debit and credit the relevant accounts to arrive at your correct workings out.

    Good Luck

    Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Panic!! Contra Entries

    Thanks for that Tracy, that makes a lot of sense from the Journal side of things.

    But I am also confused about how to do them if you start from scratch. Eg: a question I was asked was ''you buy from and sell to another business. A contra entry of £200 is to be made. What is the double entry for this??'' :?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Panic!! Contra Entries

    Credit SLCA & Debit PLCA £200 I think
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Panic!! Contra Entries

    Hi

    I misread the first question as journal entries doh!!!

    Anyhow I will try to correct the information given, by saying that a Contra entry is dealt in exactly the same way that you would enter a bank receipt and payment.

    So yes you credit the Sales Ledger Control acc and Debit the Purchase Ledger Control acc and also write up the entries to the subsidiary ledgers, instead of writing Bank as the opposite entry write Contra, the two amounts cancel each other out.

    Sorry for being mis-leading, it's been a long day studying!

    All the best,

    Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Panic!! Contra Entries

    Thanks Gem and Tracy. That makes sense now.

    No problems about your 1st answer Tracy, I know how you feel at the moment!! Trying to fit in studying around work is a nightmare and very tiring!! I probably should have explained what I meant better!!

    If only my college lecturer had explained it that easily!! I think sometimes it is easier asking someone who is newer to it all as they can explain it better!!

    I can stop panicking now!!

    Good luck to everyone taking their PLB exam next Tuesday!!

    Tara :D

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