What is a Contra Accounts
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A contra account is a
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. The net amount is often referred to as the carrying amount or perhaps the net realizable amount.
Examples of Contra Accounts
To illustrate, let's use the contra asset account Allowance for Doubtful Accounts. Since it is a contra asset account, this allowance account must have a credit balance (which is contrary to the debit balances found in asset accounts). The Allowance for Doubtful Accounts is directly related to the asset account entitled Accounts Receivable. Therefore, if the Accounts Receivable has a debit balance of $40,000 and the allowance account has a credit balance of $2,000, the readers of the balance sheet will see that customers owe $40,000 for past purchases but the company does not expect to collect $2,000 of the $40,000. Therefore, the net amount of the accounts receivable that is expected to turn to cash is $38,000.
A second example of a contra asset account is Accumulated Depreciation. For instance, if a company has a plant asset such as Equipment with a debit balance of $92,000 and the account Accumulated Depreciation has a credit balance of $50,000, the carrying amount (or book value) of the equipment is $42,000.
The income statement account Sales Returns and Allowances is a contra revenue account that is associated with the revenue account Sales. If the balance in this contra account is a debit of $3,000 and the Sales account has the expected credit balance of $400,000, the company's net sales are $397,000. This use of Sales Returns and Allowances (instead of debiting Sales) enables management to see that its customers had a problem with $3,000 of the company's goods.
#contraAccounting #contra #Whatiscontra
Translated titles:
Kuyini ama-Akhawunti Wokuthengisa
Wat is een contra-account
Cad is Cuntais Contra ann
Contra Accounts के हो
וואָס איז אַ קאָנטראַ אַקאַונץ
Šta je konta konta
Kedu ihe bụ Kọntaktị Contra
Ano ang isang Contra Accounts
Mikä on Contra-tilit
Hvað er Contra reikningur
Waa maxay Heshiisyada Contra
Akaunti za Contra
Vad är en kontrakonto?
Contra Hesabları nədir
একটি Contra অ্যাকাউন্ট কি
Mis on Contra kontod
콘트라 계정이란 무엇입니까?
کنترول حسابونه څه دي؟
什么是对冲账户
Dab tsi yog Contra Accounts
コントラアカウントとは
Contra данс гэж юу вэ
O le a le Numera Contra
Čo je kontrastné účty
Kaj je konto računov
တစ်ဦး Contra Accounts ကိုကဘာလဲ
什麼是對沖賬戶
Ki sa ki se yon Kont Kontra
Che cos'è un Contra Accounts
Hesabên Contra çi ye?
Kas yra „Contra“ sąskaitos
Wat ass e Kontrahën
Contra Hesapları Nedir?
Contra اکاؤنٹس کیا ہے
Kini Awọn Iroyin Contra
Qué es una cuenta de Contra
Was ist ein Gegenkonto?
Qu'est-ce qu'un compte de contrepartie?
O que é uma conta de contras
एक कॉन्ट्रा खाते क्या है
Wat is 'n kontrakrekeninge
Çfarë është Kontra Llogaritë
የተከለከለ መለያዎች ማለት ምንድ ነው?
ما هي حسابات كونترا
Ինչ է Contra հաշիվները
Examples of Contra Accounts
To illustrate, let's use the contra asset account Allowance for Doubtful Accounts. Since it is a contra asset account, this allowance account must have a credit balance (which is contrary to the debit balances found in asset accounts). The Allowance for Doubtful Accounts is directly related to the asset account entitled Accounts Receivable. Therefore, if the Accounts Receivable has a debit balance of $40,000 and the allowance account has a credit balance of $2,000, the readers of the balance sheet will see that customers owe $40,000 for past purchases but the company does not expect to collect $2,000 of the $40,000. Therefore, the net amount of the accounts receivable that is expected to turn to cash is $38,000.
A second example of a contra asset account is Accumulated Depreciation. For instance, if a company has a plant asset such as Equipment with a debit balance of $92,000 and the account Accumulated Depreciation has a credit balance of $50,000, the carrying amount (or book value) of the equipment is $42,000.
The income statement account Sales Returns and Allowances is a contra revenue account that is associated with the revenue account Sales. If the balance in this contra account is a debit of $3,000 and the Sales account has the expected credit balance of $400,000, the company's net sales are $397,000. This use of Sales Returns and Allowances (instead of debiting Sales) enables management to see that its customers had a problem with $3,000 of the company's goods.
#contraAccounting #contra #Whatiscontra
Translated titles:
Kuyini ama-Akhawunti Wokuthengisa
Wat is een contra-account
Cad is Cuntais Contra ann
Contra Accounts के हो
וואָס איז אַ קאָנטראַ אַקאַונץ
Šta je konta konta
Kedu ihe bụ Kọntaktị Contra
Ano ang isang Contra Accounts
Mikä on Contra-tilit
Hvað er Contra reikningur
Waa maxay Heshiisyada Contra
Akaunti za Contra
Vad är en kontrakonto?
Contra Hesabları nədir
একটি Contra অ্যাকাউন্ট কি
Mis on Contra kontod
콘트라 계정이란 무엇입니까?
کنترول حسابونه څه دي؟
什么是对冲账户
Dab tsi yog Contra Accounts
コントラアカウントとは
Contra данс гэж юу вэ
O le a le Numera Contra
Čo je kontrastné účty
Kaj je konto računov
တစ်ဦး Contra Accounts ကိုကဘာလဲ
什麼是對沖賬戶
Ki sa ki se yon Kont Kontra
Che cos'è un Contra Accounts
Hesabên Contra çi ye?
Kas yra „Contra“ sąskaitos
Wat ass e Kontrahën
Contra Hesapları Nedir?
Contra اکاؤنٹس کیا ہے
Kini Awọn Iroyin Contra
Qué es una cuenta de Contra
Was ist ein Gegenkonto?
Qu'est-ce qu'un compte de contrepartie?
O que é uma conta de contras
एक कॉन्ट्रा खाते क्या है
Wat is 'n kontrakrekeninge
Çfarë është Kontra Llogaritë
የተከለከለ መለያዎች ማለት ምንድ ነው?
ما هي حسابات كونترا
Ինչ է Contra հաշիվները
5 سال پیش
در تاریخ 1397/12/11 منتشر شده
است.
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