Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What is Contra liability account?

1- Neither asset nor liability account .

2- An asset account .

3- A liability account .

user-image
Question ajoutée par Utilisateur supprimé
Date de publication: 2015/10/25
Habeeb Pasha
par Habeeb Pasha , Accounts and Admin Officer , Basha Enterprises

Neither asset nor liability account .

Utilisateur supprimé
par Utilisateur supprimé

Answer is: (1) - Neither an asset or liability as Contra Liability account is primarily used just to offset the liability account and it cannot be classified as a liability since it does not represent any future obligation.

Utilisateur supprimé
par Utilisateur supprimé

Contra accounts in general are neither liabilities nor assets . So option  1  is the right answer .

JULIUS MURE MWARO
par JULIUS MURE MWARO , ACCOUNTANT , said abeid said & co.

CORRECT ANSWER IS (1) NEITHER ASSET NOR LIABILITY SINCE AT ANY TIME CONTRA ACCOUNT MUST EQUATE TO ZERO.

 

Rahmat Ullah Khan
par Rahmat Ullah Khan , Administrative Asst , Trojan Holding

Number one .................

Emmanuel Shalim
par Emmanuel Shalim , ESL Teacher , English Learning Zone

In simple words in accounting Contra means Cancel, when you are doing the contra entry you compensate a debit account with the same amount of credit.

 

مقبول محمد جلال علي
par مقبول محمد جلال علي , General Accountant , شركة جودت للمقاولات

....... (((3- A liability account ))).......

Michael Lagunday
par Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC

My answer is A.

It is neither and asset nor a liability account.

Mohammad Sohail veera
par Mohammad Sohail veera , Billing Executive , Karachi International Container Terminal Ltd

A contra liability account is a liability account where the balance will be either a debit balance or a zero balance.

Faisal Saleem
par Faisal Saleem , Interim Financial Controller , Daxbourne International

3 - A Liability account with Debit balance, hence the name contra liability account.

Mark Angelo Damuag
par Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

Contra liability account can be viewed as an asset account.