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Contra Equity refers to an equity account with a normal debit balance, where as other standard equity accounts have normal credit balances. Expense accounts are contra equity accounts because they are used to find totals for a debit of the owner's equity account.

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15y ago

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How drawings account is contra equity account?

Drawing account is used to reduce the capital by the owners of the business from business that's why it is called the contra account for equity account.


Dividends is what type of account?

Dividends are classified as stockholders' equity. They reduce stockholders' equity so they can also be called a contra equity account.


Treasury stock is classified as?

Treasury stock is a contra-equity account. It reduces shareholder's equity to its true value.


Is accumulated depreciation an owner's equity account?

No. It is a contra asset account


Where can you find subscription receivable in the balance sheet?

Whether Subscription Receivable account should be presented as an current asset or a contra equity account is debatable. The US SEC requires it as a contra equity account.


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Is drawings account is a contra account?

Drawings account is a contra account because it reduces the owner's equity account's normal balance, a credit balance.


Can the definition of contra be not?

Contra normally means against (from Latin.) Un- is better for using to mean not (uneducated-not educated)


Is an owners drawing part of the balance sheet?

Yes owners drawing account is contra account to owners equity and closed to owners equity account at the end of fiscal year.


Where can a person find an explanation detailing the definition of return on equity?

The definition of return on equity is the amount of net income returned as a percentage of shareholders equity. More information can be found at Investopedia and Wikipedia.


What is the definition of injustice'?

Unfairness, or a lack of equity.


Are Contra Funds in India Really Contra in terms of Investment View?

Unfortunately No. If you compare the stocks portfolio of any of these Contra Funds and any of the top Equity Diversified funds you will see that they are similar. Atleast 60% of the stocks that Contra Funds have invested are present in the portfolio if a regular equity diversified fund. Even the Sectors in which these Contra Funds have invested is more or less the same as regular equity diversified funds.Sector NameContra Fund - Sector WeightageRegular Fund - Sector WeightageFinancial Services19%21%Energy & Power14%15%Consumer Goods10%9%The weightage in other sectors are comparable too.Actually speaking, if we pick up the top stocks like ICICI Bank, HDFC Bank, Reliance Industries, Infosys etc, both the Contra Funds and Equity Diversified Funds have invested in them. Almost all of these funds have exposure to such stocks even though, they claim to be following a contrarian investment approach.