A Contra Voucher is an accounting voucher used to record transactions in which cash and bank accounts are involved.

In simple words, when money is transferred from Cash to Bank, Bank to Cash, or one Bank to another Bank, we generally use a Contra Voucher.

The Contra Voucher is commonly represented by F4 in Tally Prime.

Common Examples

• Cash deposited into HDFC Bank
• Cash withdrawn from SBI
• Money transferred from HDFC Bank to ICICI Bank
• Cash transferred between cash accounts, where applicable

Basic Accounting Rule

A Contra transaction normally affects only Cash and Bank ledgers.

For example:

Cash deposited into HDFC Bank ₹20,000

Particulars	Debit (₹)	Credit (₹)
HDFC Bank A/c	20,000	—
To Cash A/c	—	20,000

Here:

• HDFC Bank A/c → Debit
• Cash A/c → Credit

This means cash has decreased and the bank balance has increased.

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When is Contra Voucher Used?

Contra Voucher is mainly used for the following types of transactions:

Cash Deposited into Bank

When cash is deposited into a bank account.

Example:
Cash ₹15,000 deposited into HDFC Bank.

Entry:

HDFC Bank A/c Dr. ₹15,000
To Cash A/c ₹15,000

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Cash Withdrawn from Bank

When money is withdrawn from a bank for office use.

Example:
₹10,000 withdrawn from State Bank of India.

Entry:

Cash A/c Dr. ₹10,000
To State Bank of India A/c ₹10,000

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Bank-to-Bank Transfer

When money is transferred from one bank account to another bank account of the same business.

Example:
₹25,000 transferred from HDFC Bank to ICICI Bank.

Entry:

ICICI Bank A/c Dr. ₹25,000
To HDFC Bank A/c ₹25,000

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Important Points About Contra Voucher

• Contra Voucher is used for internal transfer of funds.
• It mainly involves Cash and Bank ledgers.
• It does not normally involve income or expense accounts.
• It does not directly create a purchase or sales transaction.
• It is useful for recording cash deposits and withdrawals.
• It is also used for bank-to-bank transfers.
• Contra Voucher is commonly accessed using F4.
• The transaction should be recorded with the correct Debit and Credit accounts.
• Bank reconciliation can be affected by bank transactions recorded through Contra Voucher.
• Proper narration should be entered to explain the transaction.