A contra asset account is an asset account where the account balance is a credit balance. It is described as “contra” because having a credit balance in an asset account is contrary to the normal or expected debit balance. (A debit balance in a contra asset account will violate the cost principle.)Click to see full answer. Then, what type of account is a contra account?A contra account is a general ledger account with a balance that is opposite of the normal balance for that account classification. The use of a contra account allows a company to report the original amount and also report a reduction so that the net amount will also be reported.Likewise, what is a contra asset and name two examples? Common examples of contra assets include: Accumulated depreciation. It is a contra-asset account – a negative asset account that offsets the balance in the asset account it is normally associated with. Allowance for doubtful accounts. Keeping this in consideration, what are contra items in a bank balance sheet? A contra asset is a negative asset account that offsets the asset account with which it is paired. The purpose of a contra asset account is to store a reserve that reduces the balance in the paired account. Contra assets may be stated in separate line items on the balance sheet.Do contra assets go on the balance sheet?A contra asset shows a zero or negative balance on your company’s balance sheet. A normal asset has a debit balance, while a contra asset sits against this to show the net balance of both assets on your financial statement.