Motkonton

Motkonton is a term used in Scandinavian accounting to describe a contra account that offsets a related primary account. The word combines mot, meaning against or counter, with konto, meaning account. In practice, a motkonto is a separate ledger account kept to show the net effect of related transactions by recording movements on the opposite side of the related account.

In double-entry bookkeeping, motkonton allows reporting of gross amounts alongside their reductions. Common examples include: Allowance for Doubtful Accounts as a motkonto to Accounts Receivable, which reduces net receivables; Accumulated Depreciation as a motkonto to Equipment, which reduces the book value of fixed assets; and Sales Returns and Allowances as a motkonto to Sales Revenue, which reduces gross sales. These contra accounts help present clearer financial statements by separating the original amount from its adjustments.

Regional usage varies: motkonto is widely used in Swedish and Norwegian accounting practice and similar concepts exist in other systems under the English term contra account. While the underlying idea is shared internationally, English-language texts more often use the term contra account rather than motkonto.

See also: Contra account; Net book value; Allowance for doubtful accounts; Accumulated depreciation.