A DOUBLE ENTRY FOR A TRANSACTION THAT OFFSETS ONE AMOUNT AGAINST ANOTHER ON BOTH SIDES OF THE CASHBOOK IS A

• A. original entry
• B. contract entry
• C. prime entry
• D. contra entry ✓

The answer to the question is: D. contra entry

A double entry for a transaction that offsets one amount against another on both sides of the cashbook is a contra entry.

In accounting, a contra entry refers to a transaction that involves both a debit and a credit entry, effectively offsetting one amount against another on both sides of the cashbook. This type of entry is crucial in maintaining the accuracy of financial records and ensuring that the accounting equation (assets = liabilities + equity) remains balanced. Contra entries are used to record various transactions such as bank charges, interest received, and discounts allowed. By utilizing contra entries, accountants can accurately reflect the impact of these transactions on the financial position of an organization.