Question

Identify the normal balance (debit or credit) for each of the following accounts.

1) Debit
2) Credit

Answer 1

The normal balance (debit or credit) for an account is determined based on the type of account and the nature of the transactions that affect it. Accounts like assets, expenses, and withdrawals usually have a normal debit balance, while liabilities, equity, and revenue typically have a normal credit balance.

Step-by-step explanation:

The normal balance (debit or credit) for an account is determined based on the type of account and the nature of the transactions that affect it.

1) Debit: Accounts like assets, expenses, and withdrawals usually have a normal debit balance. For example, if you increase your cash (asset) account by depositing money, you would debit the account.

2) Credit: Accounts like liabilities, equity, and revenue typically have a normal credit balance. For instance, if you receive payment from a customer, you would credit your accounts receivable (asset) account.