Contra Accounts

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The role of Contra accounts in providing extra information about their parent account. Contra accounts have the opposite normal balance to their parent account and typically highlight a reduction in the balance of their parent account. Examples of contra accounts include - Allowance for Bad Debts (to Accounts Receivable) and Accumulated Depreciation (to the specific asset). See http://accountingtriangle.com.au/cont... for more explanation.

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