Normal balance of accounts: Normal balance refers to the side of the account that is positive or increasing. Debit balance means, the specific account’s debit side total exceeds the credit side total. Credit balances means the specific account credit side total exceeds the debit side total. Assets, expenses, and dividends accounts normally show the debit balances, and liabilities, stocks, and revenue accounts normally show the credit balances. To determine: whethereach of the following account would have a normal debit or credit balance.

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Chapter 3, Problem 3.3EYCT

(a)

To determine

Normal balance of accounts:

Normal balance refers to the side of the account that is positive or increasing. Debit balance means, the specific account’s debit side total exceeds the credit side total. Credit balances means the specific account credit side total exceeds the debit side total. Assets, expenses, and dividends accounts normally show the debit balances, and liabilities, stocks, and revenue accounts normally show the credit balances.

To determine: whethereach of the following account would have a normal debit or credit balance.

(b)

To determine

To identify: The other account ordinarily involved.

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