Adjunct account is that liability account which increases other liability's book value. For example, if a corporation issues $100,000 of shares at a price of $105 per share, it will be issuing the shares at a premium of 5%. The journal entry will include a debit to Cash for $105,000; a credit to shares Payable for $100,000; and a credit to Premium on shares Payable for $5,000. Since a credit balance is the normal balance for a liability account, the account Premium on shares Payable can be referred to as an adjunct account. Immediately after the shares are issued, the shares will have a carrying value of $105,000 ($100,000 PLUS $5,000).