What is the counter of the asset?

Asset Contra is an account that carries a natural credit balance, although most assets have a normal debit balance. Assets are items that the company owns and uses during business operations such as cash, supplies and prepaid expenses along with buildings, vehicles and land. In the accounting equation - assets of the same obligations plus own capital - previous items are all debit that increases the equation side of the equation. Asset Contra still lies on the side of the equation, only with a credit balance. The purpose of the Contra account is to reduce the account of assets such as accumulated depreciation, reduce the account of the building assets. Two of the most common examples of the account of the account are a contribution to dubious accounts and accumulated depreciation. In most cases, these accounts do not appear in a standard balance sheet, which is a financial statistic that contains all assets of assets. Network of the account of the account together with the sum of the related account to reduce its balance. The net difference between an asset account and the CONTRA account is a total of ROEasy for a given period.

Companies can use the publication of a financial statement to identify and describe the use of account against Contra. For example, a contribution to dubious accounts suggests that money owes from customers that the company does not expect to receive. There may be several reasons why the company does not expect to receive this money. Most financial information dictates an amount expected to be lost, how the company has come up with a number and any financial impact that this lost capital will have on business. A separate paragraph of publication is often necessary for each account of the account of the account.

Contra accounts may have a zero balance in some cases, although the actual cases may be rare. For example, a contribution to dubious accounts is zero if the company collects all its open customer receivables or amounts have been written off as the cost of poor debt. AccumulusAnene Depreciation of Contra have a balance if the company owns a related asset. If the Company sells an asset-all-term asset such as a building or vehicle-, the final record delets related accumulated depreciation on the Contra Asset account. Therefore, these accounts will not have a balance that should be net of an asset account or message by publication.