For all the cash withdrawal from bank and cash deposits win bank, the Contra voucher is prepared. It means that the contra voucher is prepared in respect of the following types of transactions:-

  1. When cash is withdrawn from the bank.
  2. When cash is deposited in to bank.
  3. When the amount is transferred from one bank to other bank of the same company.

Source Documents for Preparation of Contra Voucher

Following are the source document for preparation of contra vouchers:-

  • Bank Pay in Slips:- When the cheques or cash deposited.
  • Cheque Book Counter Foils:- With the help of cheque book counter foils also, the contra vouchers can be prepared.
  • Any Other Supporting Documents:- For example what happens is that company instructs the banks to transfer the money to other bank of same company, in this position, the copy of letter should be enclosed with the voucher.

How to Prepare Contra Voucher

  • If the cash is deposited in to bank then the bank will be debited and the cash will be credited.
  • If the cash is withdrawn from the bank then the cash will be debited and the bank will be credited.
  • If the amount is transferred from one bank to other bank by way of issuing a cheque or by other written instructions then the bank where the cheque is deposited, will be debited and the bank from the amount is transferred, will be credited.

Precautions To Be Taken While Preparation of Contra Vouchers

The following points must be followed while making a contra voucher:-

  1. Date of withdrawal or deposit of cash must be written on voucher.
  2. The contra voucher must be numbered
  3. Proper account heads must be debited and credited
  4. Amount should be written both in figures and words
  5. The cashier must sign the voucher in case of cash deposit or cash withdrawal
  6. The voucher must be signed by the authorized person who can instruct the cashier to withdraw or deposit the cash.

Illustration – 1

Cash deposited in to State Bank of India Rs.15000/= on 31.07.15. Prepare the necessary voucher of the same transaction in the books of M/S XYZ Limited.

Solution:

Contra Voucher shall be prepared for the above transaction as follows:

M/S XYZ LIMITED

CONTRA VOUCHER

Voucher No. 101                                                                                 Date:  31.07.15

PARTICULARS

 AMOUNT

(IN RS.)

DEBIT: State Bank of India Account

15000/=

TOTAL

15000/=

CREDIT: Cash Account

15000/=

TOTAL

15000/=

Narration: Being cash deposited in to State Bank of India as per Bank Pay in Slip enclosed.
Amount in Words: Rupees Fifteen Thousand Hundred only.
Manager’s Signature                             Cashier’s Signature

Illustration 2

Rs.10000/= Withdrawn from State Bank of India vide Cheque  No, 145869 on 31.07.15. Prepare the necessary voucher of the same transaction in the books of M/S XYZ Limited.

Solution:

Contra Voucher shall be prepared for the above transaction as follows:

M/S XYZ LIMITED

CONTRA VOUCHER

Voucher No. 102                                                                               Date:  31.07.15

PARTICULARS

 AMOUNT

(IN RS.)

DEBIT: Cash Account

10000/=

TOTAL

10000/=

CREDIT: State Bank India Account

10000/=

TOTAL

10000/=

Narration:Being cash withdrawn from State Bank of India vide cheque No. 145869.
Amount in Words: Rupees Ten Thousand only.
Manager’s Signature                        Cashier’s Signature

Illustration 3

Cheque No. 546980 of Syndicate Bank for Rs.50000/= deposited in State Bank of India on 31.07.15.  Prepare the necessary voucher of the same transaction in the books of M/S XYZ Limited. The company is having current account with both of banks.

Solution:

Contra Voucher shall be prepared for the above transaction as follows:

M/S XYZ LIMITED

CONTRA VOUCHER

Voucher No. 1785                                                                               Date:  31.07.15

PARTICULARS

 AMOUNT

(IN RS.)

DEBIT: State Bank of India Account

50000/=

TOTAL

50000/=

CREDIT: Syndicate  Bank Account

50000/=

TOTAL

50000/=

Narration: Being cheque No. 546980 of Syndicate Bank deposited in State Bank of India for transfer of funds as per bank pay in slip enclosed.
Amount in Words: Rupees Fifty Thousand only.
Manager’s Signature                     Cashier’s Signature

 

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