Adjunct account

 

An account in financial reporting that increases the book value of a liability account. An adjunct account is a valuable account from which credit balances are added to another account. For example, if a company issue bonds, the unauthorized premium on bonds payable account (sometimes called bond premium) is an adjunct account because its credit balance is added to the bonds payable account. Since a liability account's normal balance is a credit balance, the premium account is an adjunct account (its credit balances are added to a separate accounts). This is in contrast to a contra account, as a discount on bond payable account would result in a debit to a liability account. 

 

 

 

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