What is Contra Equity Account In Accounting - Definition - Meaning - Examples And Types

Drawings Contra Owner's Account | What Does Contra Equity Account Mean In Accounting?

Contra Equity Account is the reversal of Owner’s Equity or Equity Account on Balance Sheet. Examples are Drawings Account, Dividend Account, etc.

1. Drawing Contra Owner’s Equity Account

It is the withdrawn of Cash or Goods by the business owner in case of Sole Proprietorship for his own personal use. It is deducted from Closing Capital on Balance Sheet.

 

2. Dividend Contra Equity Account

It is the deduction from Ending Equity on Statement of Changes in Equity as it is the distribution of Profits to shareholders (in case of Companies) or stockholders in case or corporations.