In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________

  • A Debit entry
  • B Contra entry
  • C Credit entry
  • D Reversal entry
jamb 2018accounting

The correct answer is A. Debit entry

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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