In: Accounting
The following accounts illustrate adjusting entries, identify the contra account:
Adjustment in supplies.
Accumulated Depretiation expense
Pre-Paid Insurance
Accumulated Depretiation, Equipment
--Accumulated Depreciation - Equipment is the account that has a nature of 'contra' account.
--Its a 'contra asset' account. Assets have normal debit balance, but adjustment entries will lead to the normal credit balance of this account.
--The accumulated CREDIT balance in this account is shown as a deduction from "Equipment" account, thereby decreasing the asset balance, and hence included in category of "Contra" account.