ADJUNCT ACCOUNT

An account in financial reporting that increases the book value of a liability account. An adjunct account is a valuation account from which credit balances are added to another account. For example, if a company issues bonds, the unamortized 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 bond premium account is an adjunct account (its credit balances are added to a separate account). This is in contrast to a contra account, as a discount on bonds payable account would result in a debit to a liability account.