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is accumulated depreciation a contra account
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∙ 14y ago
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What are the examples of contra account?
Examples of Contra Accounts are Accumulated Depreciation and Provision for Doubtful Debts
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.
Why drawing balance is debit?
Drawings account is contra account for reducing the owners capital account and as capital account is credit so contra account should be debit so that it can use to reduce the balance from owner’s capital.
Are withdrawals deducted from net income?
Withdrawal are charged to drawing account and drawing account is contra account of capital account so withdrawal are deducted from capital account.
What are some examples of contra asset account?
Accumulated deprciation
What are the examples of contra voucher?
# Cash account to Bank account # Bank account to Cash account # Bank account to Bank account
Give some examples of contra asset account?
Accumulated Depreciation
Why the drawings are debited instead of capital in general journal entries?
Drawing account is contra account used to charged for expenses by the owners of business instead of adjusting capital account repeatedly.
Is the drawings account is a temporary account?
Drawing account is the contra account of capital account which is used to show the withdrawel of owners from business during fiscal year and at the end of the year it is ultimately closed in capital account that's why it is a temporary account.
What type of account is a drawing account?
A Drawing account is a contra capital account and is used by a proprietor type business. It is for recording the owner's withdrawals of the company's assets.
Is it true that the drawing account is used when an owner takes out cash for personal use?
1. Yes it is, drawing account is the contra account used to reduce the owners capital account in case of owners withdraw the money from business and it is temporary account which is ultimately closed to capital account
What is a drawing account?
A draw or drawing account is a temporary account used by proprietorships and partnerships to record withdrawals by the owners. Draw accounts are contra-equity and have a debit balance. Entries in a draw account are typically closed to the owner's capital account at the end of a period.
