Contra Account

(redirected from Contra Accounts)
Also found in: Encyclopedia.

Contra Account

An account whose value offsets the value of an equivalent account. This applies whether the account is debited or credited. For example, two firms may have contra accounts in which each owes the other money. They might agree to offset the mutual debt and make a single payment to whichever is owed more. Perhaps the most common example of a contra account is an asset's depreciation, which is subtracted from its original price to calculate its book value. In this case, the depreciation and the original price are contra accounts with respect to each other.
References in periodicals archive ?
Less P10.487 billion in promotional allowances and contra accounts, Bloomberry reported P28.05 billion in net gaming revenues, 21 percent higher year-on-year.
Credit grantors have been perplexed as to whether they may offset credit balances or other contra accounts, with monies owed by the debtor, once a bankruptcy is filed.
What did the President know of the complicated arms deal with Iran, and when did he know that the Israelis were depositing profits from arms sales in Nicaraguan contra accounts? If he did not know, why didn't he?