Question

Which one of the following always has a debit balance

A. Capital account
B. Purchases account
C. Sales account
D. Purchases return account

Answer 1

Assets, expenses, losses, and the owner's drawing account will normally have debit balances. Their balances will increase with a debit entry, and will decrease with a credit entry. Liabilities, revenues and sales, gains, and owner equity and stockholders' equity accounts normally have credit balances.