Contra Expense Account

Contra means against. In bookkeeping terms, a contra expense account refers to an account which is offset against an expense account.

As an expense account is normally a debit balance, a contra expense account will normally be a credit balance. When the two balances are offset against each other they show the net balance of both accounts.

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Purchase Transaction Journal Entries

The purchases transactions journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of purchase transactions.

In each case the journal entries show the debit and credit account together with a brief narrative.

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