contra account definition. An account with a balance that is the opposite of the normal balance. For example, Accumulated Depreciation is a contra asset account, because its credit balance is contra to the debit balance for an asset account. Another example is the owner's drawing account..
Likewise, people ask, what are the contra?
The Contras were the various U.S.-backed and funded right-wing rebel groups that were active from 1979 to the early 1990s in opposition to the socialist Sandinista Junta of National Reconstruction Government in Nicaragua.
Additionally, what is a contra income account? Definition of Contra Revenue Account A contra revenue account is a revenue account that is expected to have a debit balance (instead of the usual credit balance). A contra revenue account allows a company to see the original amount sold and to also see the items that reduced the sales to the amount of net sales.
Also question is, what is a contra account used for?
Definition of Contra Account A contra account is a general ledger account with a balance that is opposite of the normal balance for that account classification. The use of a contra account allows a company to report the original amount and also report a reduction so that the net amount will also be reported.
What is contra entry and example?
Contra entry is a transaction which involves both cash and bank. Both debit aspect and credit aspect of a transaction get reflected in the cash book. For example: Cash received from debtors and deposited into bank. Cash withdrawn from bank for office use.
Related Question Answers
Is a contra account a debit or credit?
A contra asset account is an asset account where the account balance is a credit balance. It is described as "contra" because having a credit balance in an asset account is contrary to the normal or expected debit balance. (A debit balance in a contra asset account will violate the cost principle.)What does Contra mean in business?
A contra deal is an arrangement where two or more parties exchange goods or services with no money changing hands.What is the best contra?
Ranked: The top five Contra games - Contra III: The Alien Wars - 1992 - Super Nintendo (also available on Virtual Console)
- Contra - 1988 - Nintendo.
- Hard Corps: Uprising - 2011 - PS3/Xbox 360.
- Neo Contra - 2004 - PlayStation 2 (also available on PSN)
- Contra: Hard Corps - 1994 - Genesis.
What is contra income?
Contra revenue is a deduction from the gross revenue reported by a business, which results in net revenue. Contains the amount of sales discounts given to customers, which is usually a discount given in exchange for early payments by them.Who took the fall for Iran Contra?
U.S. Attorney General Edwin Meese admitted on 25 November that profits from weapons sales to Iran were made available to assist the Contra rebels in Nicaragua. On the same day, John Poindexter resigned, and President Reagan fired Oliver North.What is contra short for?
contra- 1. a prefix meaning “against,” “opposite,” “opposing”: contradistinction, contraindicate.What is contra journal entry?
Contra Entry. In the dual entry accounting system, a contra entry is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa.How do you use contra account?
A contra account is used in a general ledger to reduce the value of a related account when the two are netted together. A contra account's natural balance is the opposite of the associated account. If a debit is the natural balance recorded in the related account, the contra account records a credit.Are expenses contra accounts?
A contra expense account is a general ledger expense account that is expected to have a credit balance instead of the usual debit balance. In other words, the account's credit balance is contrary to (or opposite of) the usual debit balance for an expense account.Is accrued liabilities a contra account?
The purpose of an accrued liability entry is to record an expense or obligation in the period when it was incurred. The journal entry for an accrued liability is typically a debit to an expense account and a credit to an accrued liabilities account. At the beginning of the next accounting period, the entry is reversed.What account is cost of goods sold?
Definition of Cost of Goods Sold The cost of goods sold is reported on the income statement and should be viewed as an expense of the accounting period. In essence, the cost of goods sold is being matched with the revenues from the goods sold, thereby achieving the matching principle of accounting.Is premium on bonds payable a contra account?
Discount on Bonds Payable is a contra account because it is a liability account with a debit amount. Since a credit balance is the normal balance for a liability account, the account Premium on Bonds Payable cannot be referred to as a contra account.Are sales discounts debit or credit?
Definition of Sales Discounts Sales discounts are also known as cash discounts and early payment discounts. Sales discounts are recorded in a contra revenue account such as Sales Discounts. Hence, its debit balance will be one of the deductions from sales (gross sales) in order to report the amount of net sales.Is inventory a contra account?
A contra inventory account is a general ledger account that is paired with the inventory account, and which contains a negative balance that represents a reserve for obsolete or damaged goods. Market prices are lower than inventory costs, which will trigger a lower than cost or market adjustment.Is a discount an asset?
Discounts are neither an asset nor a liability. In every case Discount is either an expense or it is an income and should be debited or credited to profit and loss statement.Is unearned revenue a liability?
Unearned revenue is money received from a customer for work that has not yet been performed. Unearned revenue is a liability for the recipient of the payment, so the initial entry is a debit to the cash account and a credit to the unearned revenue account.What is the book value of an asset?
In accounting, book value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset.What does it mean to accrue an expense?
Accrued expense is expense which has been incurred but not yet paid. Expense must be recorded in the accounting period in which it is incurred. Therefore, accrued expense must be recognized in the accounting period in which it occurs rather than in the following period in which it will be paid.Is prepaid rent an asset?
prepaid rent definition. A current asset account that reports the amount of future rent expense that was paid in advance of the rental period. The amount reported on the balance sheet is the amount that has not yet been used or expired as of the balance sheet date. 
