04-14-2005, 08:47 AM
Farhan i am not too sure about ur examples of contra entries.one contra entry which i know is when u receive a payment from a debtor who is also ur creditor.in this case a contra entry is usually made.i dont know whether the examples u have given are called contra enteries.can somebody tell us about the contra entries concept.
As we now have known that debit is a left side and credit is a right side.but one interesting fact is that P&L account and balance sheet are now a days made in statement form where there is no left or right side.I believe this practice has created misconception among common people that debit/credit are just plus/minus.because they see that some figures are subtracted from sale,and some added similiar is the case with cost of sales and gp.
bilal
As we now have known that debit is a left side and credit is a right side.but one interesting fact is that P&L account and balance sheet are now a days made in statement form where there is no left or right side.I believe this practice has created misconception among common people that debit/credit are just plus/minus.because they see that some figures are subtracted from sale,and some added similiar is the case with cost of sales and gp.
bilal
