What Are Contra-Assets: Understanding Their Role in Bookkeeping
Contra liability, equity, and revenue accounts have natural debit balances. These three types of contra accounts are used to reduce liabilities, equity, and revenue which all have natural credit balances. Therefore, http://antarctic.su/books/item/f00/s00/z0000032/st002.shtml for these three, the debit balance actually represents a negative amount. The most common contra type, contra assets, records the loss in value …
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