31) The normal balance of a capital account (2pts) can be either a debit or a credit balance. is a debit balance. is a credit balance. is called a footing.
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which statement is true of accounts which normal balance is a credit
Sanchit J.
Normal Balances of Accounts Assets: Any Asset - DEBIT Liabilities: Any Liability - CREDIT Owners' Equity/Stockholders' Equity - CREDIT Any Revenue - CREDIT Any Expense - DEBIT A record that summarizes all the transactions pertaining to a single item in the accounting equation is called an account. Understanding the concept of Normal Balance is the key to preparing journal entries correctly. Define Normal Balance: Transaction: Purchase $5000 equipment with cash - What is the normal balance of the "Equipment" account? How would you increase the Equipment Account? (Debit or Credit?) What is the normal balance of the "Cash" Account? How would you decrease the Cash Account? (Debit or Credit?) Resulting Journal Entry?
Supreeta N.
Identify which types of accounts have a normal debit balance and which types of accounts have a normal credit balance.
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