Contra account
An account that reduces another one on the same statement. Sales returns reduce revenue; accumulated depreciation reduces assets; owner draws reduce equity.
In Solo Superstars
Contra accounts carry a grey badge and a "contra" chip in the chart. Their normal balance is the opposite of their class, which is why a healthy contra-revenue account shows a debit balance on the trial balance.
The app uses them so gross figures stay visible: you can see $10,000 sold and $400 returned rather than a bare $9,600.
Example
Income statement: Sales of Product Income 10,000, less Sales Returns & Allowances (400), net revenue 9,600.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- contra
Related
- 4900 Sales Returns & Allowances — Contra-revenue for refunds on returned items, their tax and shipping. Keeps gross sales visible while reducing net revenue.
- 1590 Accumulated Depreciation — The running total of depreciation taken on all fixed assets. A contra asset, so the balance sheet reads cost minus wear.
- 3200 Owner's Draw — Money you take out of the business for yourself. Not an expense and not salary; it reduces equity. A contra-equity account.
- 4070 Loyalty Redemptions — Contra-revenue for loyalty points customers redeem as non-cash tender at checkout. Reduces revenue without touching cash.