Sep 27th, 2024 at 12:19 PM

Contra account list of all types in accounting

Here is an extensive list of contra accounts, categorized by type, along with descriptions. This should cover a wide variety of contra accounts used in different aspects of accounting.

1. Contra Asset Accounts

Accumulated Depreciation Reduces the value of fixed assets (property, plant, and equipment). Allowance for Doubtful Accounts Reduces accounts receivable to account for potential bad debts. Accumulated Amortization Reduces the book value of intangible assets. Obsolete Inventory Reserve Reduces inventory to reflect goods that are no longer saleable. Inventory Write-downs Reduces inventory value to reflect losses from damaged or obsolete goods. Accumulated Depletion Lowers the value of natural resources (mines, oil reserves). Provision for Asset Impairment Reduces the value of assets that have lost value (e.g., due to market conditions). Prepaid Expense Amortization Reduces prepaid expenses as they are consumed or expire. Accumulated Impairment Losses Reduces the value of assets that have been impaired. Bond Issue Costs Represents expenses associated with issuing bonds, which reduce the value of related asset accounts. ad Debt Write-offs Represents specific accounts receivable amounts that are deemed uncollectible.

2. Contra Liability Accounts

Bond Discount Lowers the value of bonds issued at a discount. Debt Issue Costs Represents costs incurred to issue debt, reducing the value of liabilities. Premium on Bonds Payable Reduces the value of the premium received on bonds issued at a premium. Deferred Tax Asset Valuation Allowance Adjusts the value of deferred tax assets to account for uncertainties in their realization. Unamortized Loan Fees Reduces liabilities by tracking loan fees that have not yet been expensed. Allowance for Credit Losses on Debt Represents expected credit losses for debt instruments, reducing the value of liabilities. Bond Redemption Premium Reduces the amount of liabilities for bonds that are redeemed before maturity.

3. Contra Equity Accounts

Treasury Stock Represents the repurchase of a company’s own shares, reducing shareholders' equity. Owner’s Drawing Account Reduces equity in sole proprietorships for withdrawals by the owner. Preferred Stock Discount Lowers the value of preferred stock issued at a discount. Cumulative Translation Adjustment Adjustments from foreign currency translation, reducing overall equity. Dividends Declared (Not Paid) Reduces equity as dividends are declared but not yet paid. Capital Withdrawals (Partnerships) Tracks partner withdrawals, reducing total capital. Stock Repurchases Represents stock buybacks, reducing the total equity in the company.

4. Contra Revenue Accounts

Sales Returns and Allowances Reduces total sales for goods returned or allowances granted to customers. Sales Discounts Reduces revenue by tracking discounts given to customers for early or bulk payments. Customer Rebates Reduces revenue by tracking rebates offered to customers post-sale. Commission Reversals Reduces revenue when commissions are refunded or reversed. Allowances for Defective Merchandise Reduces sales for allowances given for defective products. Volume Rebates Reduces revenue by giving rebates to customers who purchase in bulk. Discounts Given for Early Payment Reduces sales by tracking early payment discounts provided to customers. Product Returns Tracks the return of goods, reducing revenue on sales. Shipping and Handling Discounts Reduces revenue by giving discounts on shipping and handling costs.

5. Contra Expense Accounts

Purchase Discounts Reduces the cost of goods purchased when discounts are received. Purchase Returns and Allowances Lowers expense accounts for returns or allowances on purchases. Supplier Refunds Reduces expenses when refunds are received from suppliers. Expense Reimbursements Reduces expenses for costs that are reimbursed by others. Employee Benefit Contribution Reversals Reduces expenses for refunded or reversed employee benefits. Insurance Reimbursements Lowers expenses when insurance claims are reimbursed. Refunds from Utilities Reduces utility expenses when overpayments are refunded. Returns and Rebates from Vendors Reduces cost of goods sold or other expenses when rebates are received from vendors. Advertising Expense Reimbursements Reduces advertising expenses when costs are reimbursed by partners or co-advertisers. Discounts Received on Inventory Purchases Reduces the cost of inventory when discounts are applied.

6. Contra Capital Accounts

Dividends Payable Reduces the equity balance until the dividends are paid out. Retirement of Preferred Stock Reduces capital when preferred stock is retired. Capital Distributions (S-Corp) Reduces equity when capital is distributed to shareholders in S corporations. Partner Withdrawals (Partnerships) Reduces the capital account when partners withdraw funds from the business. Stock Redemption Reduces capital when the company redeems its own stock. Owner’s Draw (Sole Proprietorship) Lowers capital when the sole proprietor withdraws funds for personal use.

7. Contra Miscellaneous Accounts

Accrued Liabilities Reversal Reduces liability accounts when accrued expenses are reversed or settled. Unapplied Cash Discounts Reduces cash balances when discounts on payments are applied. Unrealized Losses on Securities Reduces the value of securities to reflect unrealized losses. Sales Tax Refunds Lowers liabilities related to sales tax obligations when refunds are received. Unrealized Currency Exchange Losses Reduces the value of foreign currency holdings to reflect losses from unfavorable exchange rate movements. Adjustment to Fair Value (Assets) Lowers the value of assets to reflect fair market value adjustments. Amortization of Bond Premiums Reduces liabilities associated with bond premiums over time. Unrealized Losses on Foreign Currency Transactions Reduces the value of foreign currency transactions to account for unrealized losses.