Allow me to provide two (2) scenarios and guide you on how to pass contra entry in QuickBooks Online, lathachakrapani-.
Contra Entry refers to transactions involving cash and bank account. In other words, these are entries that affect both cash and bank accounts. In a dual entry accounting system, this is defined as an entry that is recorded to reverse or offset an entry on the other side of the account.
If this is something that you do regularly like entering transactions, you can record this as a transfer. To transfer money using the Transfer fund feature, you can follow the steps below.
- Click + New.
- Under Other, select Transfer.
- From the Transfer Funds From the drop-down list, select the bank account that the funds are coming out of.
- From the Transfer Funds To drop-down list, select the bank account the funds are being deposited into.
- In the Transfer Amount field, enter the amount being transferred.
- Edit the Date.
- (Optional) Enter a description of the transfer in the Memo field.
- Click Save and close.
However, if you rarely do this entry and want to offset an amount, create a journal entry. But before doing that, I recommend consulting an accountant to determine the appropriate accounts that you will use. Moreover, here's how to record a journal entry:
- Click + New.
- Select Journal entry.
- Fill out the fields to create your journal entry.
- Click Save and close.
You'll want to run a Journal Report to show the information that you need which includes the transfer transactions and journal entries. Please read this article for more information: Run Reports In QuickBooks Online.
Please get back to us if you have any other concerns about contra entry. Always remember that we're always here to assist you. Hope you have a great day ahead!
