Contra Account

An account on the balance sheet of a corporation or entity that offsets the balance of a related and corresponding account.

Investopedia Says:
An example of a contra account would be accumulated amortization. This contra asset account credits the amortization account, offseting the debit position.

1. Reduction to the gross cost of an asset to arrive at its net cost; also called valuation allowance. For example, accumulated depreciation is a contra account to the original cost of a fixed asset to arrive at Book Value.

2. Reduction of a liability to arrive at its Carrying Value. An example is bond discount, which is a reduction of bonds payable.