What is Contra Liability Account In Accounting - Definition - Meaning - Examples
Contra Liability Account is the deduction from relevant Liabilities on Balance Sheet . Examples are Debt Costs on Issuance of Debts, Discount on Loan Payable Account. When debit is issued to client, then the issuance cost is deducted from the amount of loan given to client. For example, if the client want a loan of Rs. 100000, then if debt issuance cost i.e., registration fees, Registratio n Forms fees, etc. is Rs. 500, then it is deducted from loan amount on Balance Sheet of Company’s Business.