Contra Voucher
A Contra Voucher is an accounting document used to record transactions that involve the transfer of funds between two accounts of the same entity — such as from the society's current account to its fixed deposit, or from petty cash to the bank.
What is Contra Voucher?
In housing society accounting, Contra Vouchers are used for: (a) depositing cash into the bank account, (b) withdrawing cash from the bank, (c) transferring funds between operating account and Sinking Fund account, (d) moving money to or from a fixed deposit.
A Contra Voucher debits one account and credits another within the same entity — there is no external party involved, unlike a payment or receipt voucher.
Why it matters
Contra Vouchers appear in the Receipts & Payments Account as both a receipt and a payment, so they cancel out and do not affect the net surplus/deficit. If incorrectly posted as a payment or receipt voucher, they will distort the financial statements.
Auditors check all Contra Vouchers to ensure they are genuine inter-account transfers and not used to disguise actual payments or to inflate receipts.
Legal & regulatory context
Accounting standards for co-operative societies require all transactions to be supported by appropriate vouchers. Contra Vouchers must be authorized by the treasurer and countersigned by the chairperson or secretary for internal control.
Bank reconciliation statements must account for Contra Vouchers correctly — cash deposits appear as credits in the bank statement and must be reconciled to the corresponding Contra Voucher.
How SocietyBee handles it
SocietyBee supports Contra Vouchers as a separate transaction type. When a contra entry is posted, the system automatically debits and credits the correct accounts and correctly reflects the transaction in the Receipts & Payments Account without affecting net income or expense figures.
Try SocietyBee free →Frequently asked questions
Does a Contra Voucher affect the I&E Account?
No. A Contra Voucher involves transfers between asset or liability accounts only — not income or expense accounts. It does not appear in the Income & Expenditure Account.
Example of a Contra Voucher in a housing society?
Transferring ₹5 lakhs from the society's operating bank account to a Sinking Fund fixed deposit. The operating account is credited, the FD account is debited — both are society assets, so it is a contra entry.