Wednesday, September 8, 2010

What is an Adjunct Account?

An adjunct account is an accounting account that accumulates either additions or subtractions to another type of account. Thus, the original account may retain its original identity and confusing the accountant or user of data is avoided.

Examples adjunct accounts include premiums on bonds payable, which is a contra account to bonds payable; and also accumulated depreciation, which is an offset to the fixed asset which is being depreciated

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