Creating a contra bank account

A contra-bank account will now need to be created for the variation to be receipted into. The contra-bank account is essentially a “dummy” bank account that will be used to move the correct dollar values to the correct bank account via a general ledger journal later in this process. It is recommended that the contra-bank account be created under Liabilities in your General Ledger, but you can place it under Assets or anywhere else your accountant recommends placing it. In this example we will call the contra-bank account the ‘Client Refund Account’ but this account can be called anything. This can be named anything that is appropriate.