Contra Accounts
Channel: Brent Gregory
Date: 29/07/2011

The role of Contra accounts in providing extra information about their parent account.  Contra accounts have the opposite normal balance to their parent account and typically highlight a reduction in the balance of their parent account.  Examples of contra accounts include - Allowance for Bad Debts (to Accounts Receivable) and Accumulated Depreciation (to the specific asset). See http://accountingtriangle.com.au/contra.html for more explanation.