Contra Entries — Recording Transfers Between Accounts

A Contra Entry records the transfer of funds between two accounts owned by your business — typically between your bank accounts, or between bank and cash.

What is a Contra Entry?

In accounting, a contra entry is one where both debit and credit are in the same group (both cash/bank). For example:

• Withdrawing ₹10,000 from bank to keep as petty cash
• Transferring ₹50,000 from Current Account to Savings Account
• Depositing cash collected from customers into the bank

When to Use Contra Entries

How to Record a Contra Entry

1. Go to Accounting → Contra in the sidebar.
2. Click + New Contra.
3. Select:
   • From Account — The account money is leaving (Cash or Bank).
   • To Account — The account money is entering.
   • Amount — Transfer amount.
   • Date — Transfer date.
   • Reference — NEFT/IMPS reference number or voucher number.
4. Click Save.

Effect on Cash Flow

Contra entries do NOT affect your income or expense — they are simply internal fund movements. They appear in the Ledger of both accounts involved but do not change your profit/loss.

Tip: Record contra entries promptly when you deposit cash into your bank. This keeps your bank balance in BillYantra reconciled with your actual bank statement, making month-end reconciliation much faster.