which-set-of-accounts-has-the-same-type-of-normal-balance-a-cash-accounts-payable-b-prepaid-rent-une

Question

Which set of accounts has the same type of normal balance?
A. Cash, accounts payable
B. Prepaid rent, unearned service revenue
C. Dividends, common stock
D. Accounts payable, retained earnings

Puneet Prajapati · Accepted Answer

Okay, so let&#x27;s understand the current situation. So throughout the subject, who are the accounting as a subject? We have five type of accounts. Okay, I&#x27;m going toe. I don&#x27;t straightforward that cowboy types of accounts we have. Okay, A sect liabilities we can see. Oh, this. Okay, so, polarities living you Revenue and capital. Okay, so for a sect, the items such as cash balance at the end of the lemon, the amount recoverable from the customers after we have sold seven items to customers so that tomorrow will be considered as a sex. Okay, expenses. I guess everyone will leave a little family with that expenses. Like we haven&#x27;t got telephone expenses. Father. Business can be havin card. Bring general Station the expenses for the business so back will be considered as expenses. However, in case off second line, we have liabilities. So libraries are in contrast to assets. It means that support. Let&#x27;s we have We have purchased some of the material from our supplier, but we have not been done yet, so the amount becomes people after a certain period of time. So Dr Martin will be known as liabilities. They live in you. Let&#x27;s suppose you wearing business off selling something just because any type of Put yourself Mrs. So whenever you will sell those goods and services to anyone Julian Brady revenue That is also no less say&#x27;s what sales is. A little technical dough. But for sake of understanding the five types of the comes, we should consider the Ravens on the revenue. Okay, Capital is used for extradition covered in differentiate capital. However, these two we will understand it later parts Whenever we will face such accounting problems, However, you can know as off them like finance raising. Fine. We will regard every finances in production into the capital comes okay. No, a second expenses. Well, generally have a typical Ellis. You can write it down in your notebook, sergeant. Okay, so they&#x27;re going to be easy for you to make me. So make it to make it to revise it. Market and live in the seven capital will generally have a credit pellets. Okay, No aspect that given portion. Or if we have so it&#x27;s a sect of account is the same type off normal balance. So, Asper Averell illnesses the correct choice. The correct choice for problem problem 36 is the so that&#x27;s all for the garlic and solution. Thank you

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the solution. Cluster for Louisville. Begin with the five type of accounts that that will be applicable throughout the country. OK, first is sex. Okay? The outside you covered up in the mountains. Let&#x27;s suppose you have a business and you have sold some water service is who? Your customers but the customers saying right now that he will be paying optimists are depleted of time that just around 30 days, so that tomorrow become automatically recovery. But okay, after that officer computer to think so that tomorrow will be being ordered in sex. Okay, gash in bank balance, if you will receive that amount from your customer so that so you will be mandating that cash balance at your entity in your cash drawer or any night off locker. Okay, So that will also become a sense in Henry. However, in traditional dance, we usedto dumb or we usedto no supplies, as in Bentley and then in inventory is nothing but the material you have purchased from you supplier for further processing off for further processing into finished goods so that you can so sold. You can sell those finished words too. Justin. Okay, let&#x27;s go to liabilities. Lively desired. Mostly in contrast, off six he belonged. So just we have This doesn&#x27;t bring three, like supposed You are purchased some inventory from your supplier, but you have not cared for them so that tomorrow becomes people. Okay, if that amount becomes people, so fact is considered as your liability, you have to pay off that liability after a certain period of time. Okay. Short and long term that that you like, or you take a loan from the bank to finance your different type of needs off the ones based on. You know, let&#x27;s example off chasing house, which isn&#x27;t properly purchasing car, motorbike or any night off needs you on. Okay, Shark and long term loans then come to capital. But on Capitol cookies, your capital, we will discuss in more detail when we will face much advanced problem later. Tow this. Do you see you contract your downfall form of BSC provincial capital in your lord books so that it would be easy or you devised these toes just before the accepts. Okay, so the capital is a dull which we use duty, Bardi Transactions allergic to financing for the business. Okay, no data expenses, okay? And I think everyone, everyone will be familiar with the expenses. So OK, the expenses which are incurred to one the profit on which which are incurred who relieved business but no personal nature are no personal expenses are allowed, Like you cannot say that you are going to consider personal expenses in your profit and loss and profit and loss statement off the business. Okay, so that should not be the case. No revenue if you are into If you&#x27;re in the business of selling or just ugly sister someone else to your customer. Okay. In most of the cases, so you&#x27;re Belgian. Date your revenue through selling the goods and services to your customer either through care Sailor Day Brazil like receiving the amount after later point in time. So that will become your sets. You can also have other angle. Okay, so these are the five type of accounts against which sorry against which I have stated the terms very, very relevant to them as off now for, you know, driving the solution for the current problem. However, I would also like to see what I would order so like to introduce some different companies. Five day difficulties. First of all, no. Let&#x27;s talk about the balances that how the how the different type of accounts have balances in most of the cases. Okay, so a certain expenses generally very, very generally means in most of the guests. In 99% of the cases, 99% of the cases will be will be having never evidences you will get to know a lot for this to me. What is the actual meaning off their Rebalances? While we will be moving to advance problems because of the unless another ways, it will not be much clearer to you, but as a matter off you the basis for the current solution, you can remember this. This is very, very simple. Nothing. Nothing toe, You know, very large it revenue capital, liabilities. Well, generally have credit balances, is that thank you. So what does that mean? Portions is which of the falling accounts will ever never dependence. Okay, So as we have just understood that the supplies order invent tree will be considered as an insect. Hey. Okay, so So we have we also know what is the meaning of in victory? No confirm Asper These rules, the asset will have generally or debit balance. So no, we can begin. Dr Other solution based on the analysis are based on the material we have. Just George it down. Okay, The correct choice for problem 33 is see? Okay, so that&#x27;s all for the solution. Please make sure that you will, Right? You will ride on your job. Your job down in your notebook for sheet as well as this as well as the second sheet. Third ship is not It&#x27;s not needed. Believe I don&#x27;t. Okay, I&#x27;m asking you to write down the first interrogation because that in most of the cases, whenever you will have exam so before 5 to 10 10 days back before that you need to them. You need to devise all this. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

selectors understand this solution for the current problem. Okay, so except all of the choices we have accounts receivable. Okay, Most of all, we really find what is a monstrous evil. Then we will move forward. The explanation that how this account will require generally debit and credit and trees okay throughout the country, period or through the financial office computer. Okay, so, guns, receiver buddy, this is our the first tool. This a laundry first to the financial assert against Ridge. The anxiety? Yes. Zane died. Words. Our service is blames. Okay, so we have the pretender traditional definition of a counselor. See, however, we will understand. It proved the example. Okay, let&#x27;s suppose we have X and X company. Sorry. And we have a couple. Okay? No nexus. Suppose what? The ex con bridge is it sold for? Nietzsche went off. Daughter 1500. Okay, I&#x27;m no lingered by making the direction levels. Okay. No. What happens? What very complex is electors. Okay, So a company said that hunky ex in company I do not have difference right now, so I will pay you later after a certain period of time. That&#x27;s attractive is okay. No. What happens the fuck 1500 will be considered will be considered as Gotham City. However, a concert and ordinated name of a country&#x27;s here with this neckers. Okay, it&#x27;s a baby B b O goddess. Okay, so those were what happens. So we can obviously understand that every entity is, you know, commenced with the motive. You on the cover and whenever there will be a motive one, the prophet, it is very, very office that productions off selling. I comes to the customers transactions off purchases, the local or the raw material from the suppliers. These transaction will be very merry. Gentlemen, in a business context, okay? It&#x27;s like a day to be transition that will. That will obviously have to happen to make a profit to the entity. Okay, so that is I the accounts receivable. Auditors will require Jensen the debit and credit countries throughout the accounting. Peter. Okay, so that is why we have the correct choice for problem 39. Okay, Problem 39 is hey, so by that&#x27;s all because the current is even said the tradition off selling off purchasing the goods okay to customers and from suppliers will happen in a dreary on day to day basis. OK, so that is why our correct choice for the Brown 39. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, So let&#x27;s understand. What is the meaning off set has given another question right now. So first of what, we will go with the literal definition or we can sit traditional definition which has been given in the books and followed by that. We will give an example to understand more clearly what is the meaning off. So let&#x27;s even understand the current definition with a more elaborated example is it is very thought financial drawbridge because Vivian, because without financial transaction, they will not be any, you know, any type of financial obligations arising out any of the parties. So that is right. There needs to be a financial transaction to create it. Obligation festival. Okay, so first of all, let&#x27;s understand that the basic the basic off, basic definition off said it is an amount which an individual are a company or any type of legal person. So, you know, individual like a human being or any type of sole provider which is dealing in tow, any type of business. Okay, on a company like a legally incorporated company. As for the local regulations off, the idiot or any type of legal person know what does the legal person. Pete. A legal person could be any type off. Oh, a sub sub ordinated off the company like he can have partnership forms. We can have limited liability partnership forms. We can have any type of authority that that will be or that has been created. Patty government. Okay, so that type of legal person like municipality and many of them, please. So assistant authority, which expects to receive from now, expect to receive what I&#x27;m out. So so what In tow? State that. But you can assume like this expects to receive amount from any other person as a desert off financial transaction. Let&#x27;s understand this. It molded into in itself. Because with example, you get a better clarity. More elaborated. Meaning, Lottie Basic traditional definition. So Mr A has sold What? Just that he has. Don&#x27;t few batches off students in dominant off Generally. Thank you. Oh, fee. So, Donna, 15 100 don&#x27;t What? In total means total fees are 1500 for all the students. For all the matches off, all this one&#x27;s in duty. But as of now, hasn&#x27;t r B made otherwise? We stood a on treatment off such ease. No. What? No what we have just studied in our basic on begins it classic definition of a sick or be Esther deed that it is an amount which an individual are accompanying or any type of legal person expects to receive. Okay, you can remove it from here because actually, we have stated it here. More people in the first place so expects to deceive from any other person from any other person as a dessert, all financial transactions. So there are four things more clearly wants to follow this one on this whole world. Then any other person, it maybe anything, Any other person, okay. And 40 minutes desertified. Roderick. And the baby needs to be a financial transaction executed before creation of such obligations. So in the current case, Mr has start some off the swings in the month of January and have heard fees off $1500 for all of the stories in total. So we have to advise that what What type of treatment has to be done by Mr for treating such amount? No. As for the definition, it can be clearly seen that the $1500 will be treated as in a sect. Bye. Mr E. Because off financial transition. Now, what is the meaning of financial transaction? We do not need to get confused in the names suggest they&#x27;re fun. And Children, which manages that means just that it involves supplying a good just obviously, is any type of goods or services underdone for receiving cash for receiving money from another person who is receiving the goods off service is okay. But when we are exchanging off goods or services, this will not involve anything or this will not be included in financial transaction. Okay, my Mr Eight. Because off when Children are virgin? No. Between whom? The financial transaction is being executed. Mr A. Huh? Students, Because students are receiving goods and services and mystery is expecting to receive fees from the students. So that is why it isn&#x27;t a set for Mr So for the current problem. Current problem. 15. We have I got a choice. So we have in the current problem in the current problem. 15. The correct choice is the correct choice. Is the so I problem? 15 by variety. Because it has been there. Dennis, he&#x27;s all right. Their distance e Mr E is expecting will deceive the please. So therefore the correct choices be for the control 50. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the solution. Okay, But to begin with, the 1st 1st start And how many times of Combs you do have another thing coming? Most of all, sex, Captain. Liabilities, expenses, even you. Okay, so you can write it down. It will be very important for you, you know, summarize the rules, which I&#x27;m going to write order by that. So it&#x27;s inside, but it covered in the remote. Like, let&#x27;s suppose you are and do business off setting video games are sending any type of just offices to your customer. So let&#x27;s suppose your customer say&#x27;s that I will pay you off after Peter Activities. Okay, so that tomorrow will become recoverable after Peter after a certain period of opportunities. Okay. No, such a month will be considered as a sex. Such amount will be known as a sex. Okay, uncomfortable emotions, Gash. Banged like these lets me go extinction. Okay, So capital is a goody, or is it pretty? What does preference difference share capital as as for here. See, for capital you can I do for you appreciate capital. Okay, So the capital refers to the amount which is raised internally within the overall vision or externally, out of the organization who financed the business. Okay, so fancy pool activities are becoming That&#x27;s supposed we have. We are willing to start our new business, but supposed But suppose we have We are sort of exercise off now. So what you will do? We will raise funds from outside of the company, like from the investors were willing to invest in the new companies. Okay, so that will be considered as capital. However, you can also understand from this that of capitalism liability because it&#x27;s a supportive you are. You have investors, and they are investing in your phone. It is very very office that they are, like, literally could it there, Mr. After a certain period of time. Like, let&#x27;s suppose, after 20 to 30 years. Okay. Okay. But as of now, understand this. This is a capital. It could be preferential capital. Okay, level. These are Babel, the most short term neck sharp. Someone long necked. Even the moms are These are the moments with Jack people. After a certain period of time, like suppose you have a Ford manufacturing company. Okay, So, due process, they say level correct. Okay. You have to purchase the raw material from somewhere reds. So if you have purchased the normative some from some billions, then you have to pay to demonstrate your suppliers also. Okay, So infinity. So whenever the alone becomes people after you have a veil, the benefits off the supplies that among will be considered as liberties. Short term. Didn&#x27;t love him there, as you are. Very very. You will be very, very familiar with this legs. Next. I suppose you have. You take loan from banks to purchase the house, but she&#x27;s different times. Or purchase different each other vehicles, ours electric tricycle deeds, type off short and long term bet will be classified under. Okay. What? Our expenses. Okay. Expenses, everyone, there is no Okay, So these are the moans in guard bar business only business expenses will be considered as expenses. Not, of course, the expenses. Okay. It lets you supposed businessman is also because you didn&#x27;t expense off marriage off his own in the business. And, Lord, we consider it will never be the case. Okay. Expenses that ever knew makes is emergency services. So these are five type of colors we will have throughout the accounting. You are the only thing when I see accounting, it means throughout the accounting, because the different countries Okay, let&#x27;s the basic accounting rules first apart, you can also write it down. These are actually diamond ruins of accounting. However, only a part off it. I&#x27;m going to write it here now for I mean solution. Okay. Diamond in Suffolk County? No, in Greece in. Okay, I will write the full of all the news. OK, first rule is this in grazing a set and expenses, we&#x27;ll always be Devon water. Never. How are they? Never did importance. They are diverted. They will explain later. Mingle face much detail problem about this. Okay. The grease in a sect expenses are all this credit. These are their diamond rules of accounting. However, if you try to find the science behind this, there will be no una pause. There will be no possible or logical reason behind this. That by these are crediting the street of being diverted. They will be most girls on which you can call raise portions of our back. Okay. These are Dr Regional Foods and the after all of this Elevens. Okay, Ingres in. I have a new capital Okay, I have a new capital. Hey, Liabilities are always the credit. Are always credit. It has the reason you have a new capital. Liabilities are always never please I D&#x27;s Diamond, whose these will be very, very important for you some guy&#x27;s dick time or before your exams. Okay, so forward by that we ever understand that the evidence this the next time to our basic solution. But it stays. Which of the falling accounts will be increased after I&#x27;ve never Okay, so we have seen only a set and expenses if there isn&#x27;t increasing and second expenses, David, we&#x27;re never so, First of all, we have to identify that our doctor four items even in the ocean, which is the asset so accepted, except the three choices you have. We have only supplies. As I said, supplies that you can also wrote it down this re force, the invent three, which we have what changed from over Suppliers don&#x27;t go to use saleable, and Ben isn&#x27;t seal even protect. It means the product in which we are mainly dealing okay? No. So the correct choice. So this should be considered as a set by there. So because via the, uh, We have these supplies as part of our Henry. So by possessing this, leaving police ever finished schools that will be sold to other customers. Okay. You know, it&#x27;s all taken alternative name in Wendy as an alternative to name supplies. So the correct choice four of 29 is see? Okay, so these type of these are defined type of accounts, but you have to remember, And although you will get a handle on it when you will you look at this detail problem. These other diamond was like, You have to You have to remember this. Okay? And you have to revise before your exams doing the exam. If you get through this order by that, we have a deal. I have a solution for a problem. 29 which is See, Thank you.

Puneet Prajapati · Answer

Okay, so we are going to understand the trial balance. Okay for her by that Beeville indistinct the hallway. How weekend you hear a different version of travel buttons all together. Okay, so it is. Ah, summarised Form off on the ground. Bellen. Sears! Okay. Who the pair? Bellen ship. Okay, so, first, if I Let&#x27;s suppose all lovey every forever be everything. The technical definition, however, leaving in this day that how booties toward different version of events. Let&#x27;s suppose there are 100 thousands of transaction in a business entity. Okay? Because of business, entity has to deal with multiple times multiple supplies to run the business keeps will actually 10,000 evictions. Okay, so in accounting is employed Lettuces entity Who records the transaction? Okay, So older by that, the content it was those projections. Okay, after posting the on my back, the So what? What step? The posting give us It gives ah, high level pale off all the account balances. Okay, there s our pal. Balance gives us summarize form of competences and from travel INTs, VP, daily bed and shit. However, I&#x27;m interfering. The second possessed with the definition, like my drawing the arrow. However you can right this example. Very clear. Okay, I&#x27;m drying the arrow to make the things very, very clear. Okay, so balance sheet is the final step in patient off hundreds of statements and their trial balance is the lots last stepping stone to abandon ship. Okay, now, let&#x27;s suppose the counting Mrs 50 Transactions deck would very, very important from the business point of view. So those 52 elections were left to be recorded forward by that left, people stared, and their effect was also Lord implant balance. So? So the banshee per patient will be wrong. Okay? No. What happens? There comes the concept. A concept off. And just in 12 minutes. Well, that rescue, okay? And just simply ambulance water. What? It will have just take a lord. So the ambulance will off course have the effect off 10,000 transition. However, when we will say when we say that adjusted evidence, it will also have the Fecteau 50 transactions. Okay. Now, from these total effects, they will prepare over Maren. She? But what happens? These salvation? Well, in total, I have a single effect on a single ago. Okay, So these these people on the chin. We&#x27;ll have a symbol single effect on a single ago. Like the combined effect we can see noticing the combined effect on a single account that we know that that people less do you notice? So under Dana thinks what we have in the earnings we have our perfect our laws and nurtured during the current financial year. Retained earning balance at the beginning often engineer and any wouldn&#x27;t be through the shared orders. OK, so these 50 transaction, or we can see any number of transaction will have effect will ever direct effect on this. Okay, so now what we have what we have that the balance on the balance of retained earnings are just to trial balance and Bill in chief will be different by that. So because 52 election will have a combined effect on tenements and that is why we have different parents over Dana, Knicks, honor, justice, tell evidence in different balance sheet level. Okay, so that that matches with So they retained earnings that count, which will have different. But it&#x27;s on both the statements. Okay. And back matches with joi sey engages off, but in Kocian. Okay, So the correct choice is joi sey. Okay, that&#x27;s all for our solution. Thank you

Problem

Which of these transactions requires a debit entr…

Problem 36 Medium Difficulty

Which set of accounts has the same type of normal balance?
A. Cash, accounts payable
B. Prepaid rent, unearned service revenue
C. Dividends, common stock
D. Accounts payable, retained earnings

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting