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What is a contra entry and how do I make one in Zoho Books?

A contra entry refers to a transaction involving both cash and bank accounts. It comprises of the below transactions:

You can record a contra entry for your Cash to Cash and Bank to Bank transactions either from the Banking module or the Accountant module.

Cash to Cash	Bank to Bank
Go to the Banking module on the left sidebar and select the cash account in which you want to record the transaction.	Go to the Banking module on the left sidebar and select the bank account in which you want to record the transaction.
Click Add Transaction, and from the dropdown, select Transfer To Another Account if you want to record cash outgoing, and Transfer From Another Account if you want to record cash incoming.	Click Add Transaction, and from the dropdown, select Transfer To Another Account if you want to record withdrawal, and Transfer From Another Account if you want to record deposits.
In the pane that opens, select the corresponding From / To cash account.	In the pane that opens, select the corresponding From / To bank account.
Select the Date, enter the Amount, and other necessary details, and click Save.	Select the Date, enter the Amount, and other necessary details, and click Save.

Cash to Cash	Bank to Bank
Go to Accountant on the left sidebar and select Manual Journals.	Go to Accountant on the left sidebar and select Manual Journals.
Click + New Journal in the top right corner.	Click + New Journal in the top right corner.
Enter a Note for the entry, and select the relevant cash accounts for Debits and Credits.	Enter a Note for the entry, and select the relevant bank accounts for Debits and Credits.
Click Save and Publish.	Click Save and Publish.

To record Cash to Bank entry:

Go to Banking on the left sidebar and select the bank account to which you want to deposit the cash.
Click Add Transaction and select Deposit From Other Accounts under Money In.
In the pane that appears, enter the amount to be transferred and select the relevant cash account in the From Account field.
Enter other necessary details and click Save.

To learn how to record bank to cash (withdrawal) transactions, refer to this FAQ.

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