When both debit and credit entries in respect of a transaction are made in the same ledger account, this is

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When both debit and credit entries in respect of a transaction are made in the same ledger account, this is called a contra entry. A contra entry is an accounting entry that offsets another accounting entry. It is recorded in the same account as the original entry but with the opposite sign. For example, if a company has a bank account with a balance of $1,000 and it receives a check for $1,000, it will record a debit entry of $1,000 in the bank account and a credit entry of $1,000 in the accounts receivable account. When the check is deposited and cleared, the company will record a contra entry by debiting the accounts receivable account and crediting the bank account with $1,000 to offset the original entries.