In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________
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Correct Answer: Option A
Explanation:
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
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