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What is the normal balance for contra asset accounts? Debit or Credit?

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Question added by Muhammad Mujtaba Shafique , RJ , Dream Fm106
Date Posted: 2016/02/03
Sultan Alghamdi
by Sultan Alghamdi

contra asset accounts should be a credit

contra asset account is a credit nature 

Nishshanka Wijerathne Bandara
by Nishshanka Wijerathne Bandara , General Manager Gm , Transnational Security Solutions Lanka

A contra asset account is an asset account where the balance will be either a credit balance or a zero balance. 

 

(A debit balance in a contra asset account will violate the cost principle.) Since a credit balance in an asset account is contrary to the normal or expected debit balance the account is referred to as a contra asset account.

 

The most common contra asset account is Accumulated Depreciation Account where balance is mostly credit or can be zero.

Maria Cristina Agranum
by Maria Cristina Agranum , Assistant Section Manager , Charoen Pokphand Foods Philippines Corporation

CreditA contra asset account is an asset account where the balance will be either a credit balance or a zero balance. Most common account is Accumulated Depreciation.

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