Contra Revenue Accounts List

Contra equity account for example owner s drawings account treasury stock account.

Contra revenue accounts list. Contra revenue accounts are commonly encountered however a business can also have other forms of contra accounts including. The debit and credit aspects of the transaction. 4 contra revenue. The amount of gross revenue minus the amount recorded in the contra revenue accounts equal a company s net revenue.

In the above method we debit the contra revenue account in the trading account but generally the company uses the first method of accounting of contra revenue. A contra revenue account allows a company to see the original amount sold and to also see the items. Contra revenue is a deduction from the gross revenue reported by a business which results in net revenue contra revenue transactions are recorded in one or more contra revenue accounts which usually have a debit balance as opposed to the credit balance in the typical revenue account there are three commonly used contra revenue accounts which are. A contra revenue account is a revenue account that is expected to have a debit balance instead of the usual credit balance.

A contra revenue account carries a debit balance and reduces the total amount of a company s revenue. The effect of contra revenue in income statements provides accurate financial information of the company. Contra asset account for example depreciation allowance for doubtful debts. A reduction from gross revenue which results in net revenue is the contra revenue account.