Question

Th normal balance of any acccount is the

Answer 1

Normal balance means the side where the balance of the account is normally found.

For example:- Assets normally have a debit balance, Liabilities & capital normally have a credit balance, Income normally has a credit balance and expenses normally have a debit balance.

Now, means if you are putting an amount on the normal side, we are increasing that account and if we are putting an amount on the opposite side, we are decreasing that account.

For example:- For Cash, if we are putting an amount on the debit side which is its normal side means we are increasing hat account and if we are putting an amount on the credit side, which is its opposite side, means we are decreasing that account.