Question

The normal balance of an account is: Select one: A. The debit side B. The credit...

The normal balance of an account is:

Select one:

A. The debit side

B. The credit side

C. The side on which increases are recorded

D. The side on which decreases are recorded

Business   Accounting   
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Homework Answers

Answer #1

Answer = C

Normal balances of Different acconts are different like an Asset has Debit balance, Liability has Credit Balance, Owner Capital has Credit balance. Expense has Debit balance and Incomes have Credit Balance.

Normal balance of an account is on the Side on which Increases are recorded as it is the favourable balance.

Like if there is a Increase in Asset we will debit that account and we know that Asset have debit balance, So The normal balance of an account is the side on which Increases are recorded.

Like if there is a Increase in Liability we will Credit that account and we know that Liability have Credit balance, So The normal balance of an account is the side on which Increases are recorded.

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