Debits and credits for contra accounts and drawings
Objective: Post correctly to contra accounts and Owner Drawings.
Recommended first: Double-entry bookkeeping, Contra accounts
Contra and drawings accounts follow the same rule — post on the normal side to increase — but their normal side is the opposite of what beginners expect.
- Accumulated Depreciation: normal credit; a credit increases it (reducing net assets).
- Sales Returns and Allowances: normal debit; a debit increases it (reducing net sales).
- Owner Drawings: normal debit; a debit increases drawings (reducing equity).
These accounts trip people up because they feel backwards. Accumulated Depreciation grows with credits even though it relates to an asset. Owner Drawings grows with debits even though it is an equity account. The logic is consistent: each moves in the direction that reduces its partner. Depreciation reduces net assets; drawings reduce equity; returns reduce net sales.
When closing at period end, drawings are credited to bring them to zero, and that amount reduces Owner Capital directly.
Check your work
- Is this a contra or drawings account?
- Does your posting increase it on its normal side?
- Is the partner account left unchanged?
The owner takes $600 for personal use. Owner Drawings increases (debit); Cash decreases (credit).
| Account | Debit | Credit |
|---|---|---|
| Owner Drawings | $600.00 | |
| Cash | $600.00 |
Common mistakes
✗ Crediting Owner Capital for a withdrawal.
✓ A credit increases capital. Use Owner Drawings (debit).
Guided practice
Use hints freely here.
Item 1 of 2
Credit to Accumulated Depreciation – Equipment
A credit is posted to Accumulated Depreciation – Equipment. Does the credit increase or decrease this account's balance?
Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 4
Debit to Accumulated Depreciation – Equipment
A debit is posted to Accumulated Depreciation – Equipment. Does the debit increase or decrease this account's balance?
Progress is saved on this device. Create a free account to keep it everywhere.
Key terms
- Owner drawings
- Withdrawals by the owner for personal use.
- Contra account
- An account that reduces a related account.
References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.