Contra Entry Journal

A business has a balance due from a customer on its accounts receivable ledger, but also owes the customers business an amount on its accounts payable ledger for goods supplied. A contra entry is used to offset the two amounts, leaving a net amount outstanding to the customer.

Last modified November 6th, 2016 by Michael Brown
Read more

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.

Last modified November 6th, 2016 by Michael Brown
Read more

What is a Contra Revenue Account?

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

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

Last modified April 20th, 2019 by Michael Brown
Read more

You May Also Like