Accounting JAMB

In reconciling the branch and head office accounts; remittance in transit in the branch books is treated as a ________?

A. Debit entry
A. Contra entry
C. Credit entry
D. Reversal entry

Correct Answer:

Option A – Debit entry

Explanation

A contra entry is an entry which is recorded to reverse or offset an entry on the other side of an account

When cash is remitted from the branch

Dr Bank account

Cr Branch account

Or

Dr Remittance from bank

Cr Remittance from branch

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