Contra accounts are accounts that reduce or increase the value of the main asset or liability account.
The contra account is not an asset or liability in itself.
Contra-asset accounts are used to adjust the amount of the related asset account. Examples of contra asset accounts include:
- Allowance for Doubtful Accounts
- Accumulated Depreciation-Land Improvements
- Accumulated Depreciation-Buildings
- Accumulated Depreciation-Equipment
- Accumulated Depletion