00:01
The first answer is total equity can increase the balance sheet whenever a company issues new shares of stock.
00:24
If the company receives donations, if a company receives donations of capital from owners, from owners or other parties, this also increases, increases total equity.
00:51
Other common increase in total equity results from increase in company's retained earnings.
01:09
So these are the factors which increases the total equity.
01:15
Coming to the second part, accounts that normally have a debit balance.
01:23
Debit balance, it includes assets, expenses and losses.
01:36
Example of these accounts are cash, accounts receivable, prepaid expenses, fixed assets, fixed assets account, wages, expense and loss on sale of assets.
02:08
Now coming to the another part, the credit balance is normal and expected for the following accounts.
02:20
Liabilities, liability accounts such as accounts payable, notes payable, then wages payable, interest payable, taxes, payable, then customer deposits, customer deposits, deferred income, tax, etc...