Adjunct Account

What Is an Adjunct Account?

An adjunct account is a valuation account used to increase the book value of a related account. It typically accompanies assets or liabilities on the balance sheet. 

Key Takeaways

  • Definition: A secondary account that increases the value of a related primary account. 
  • Purpose: To provide detailed information on the value of assets or liabilities.

Examples of Adjunct Accounts

  1. Premium on Bonds Payable: Increases the book value of bonds payable. 
  2. Unamortized Bond Premium: Represents the premium on bonds that have not yet been amortized.

Importance of Adjunct Accounts

Adjunct accounts offer transparency and detail in financial statements, helping stakeholders understand the full value of certain assets or liabilities.


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