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Accounting
Contra Account
An account that has the opposite normal balance and is used to reduce the value of its paired main account.
Contra accounts keep the original cost visible while showing the reduction. They never have a debit or credit balance opposite to their partner account. Common ones are accumulated depreciation and sales discounts.It's like a 'minus' button that sits right next to the main number so you always see the net amount.
Real world: Accumulated Depreciation is a contra account that reduces the value of Equipment, and Allowance for Doubtful Accounts reduces Accounts Receivable.
💡 Contra accounts are the clean way accountants show 'this asset is worth less now' without erasing the original purchase price.