What is a normal debit balance?

Question

What is a normal debit balance? I don't get it. And which accounts have it?

Answer 1

The accounts that increase on the debit side have a normal debit balance. These include bank (cash), accounts receivable, supplies, equipment, land, etc.

Answer 2

Normal Debit Balance

Answer 3

Assets and expenses increase in the debit side . If you get money in you debit bank and credit where the money came from (sales, rent received , debtors etc.) if you pay expenses the business has (for example paying salaries and buying stationery) you debit the expense account (salaries,wages,stationary etc) and credit the account where the payment was made (bank,cash or creditor if bought on credit).
Other accounts can have debit balances it just means different things like if the capital account has a debit balance that means that the drawings (money taking for personal use) exceeds the capital invested (unless drawings is kept as a separate account , which also has a debit balance but is a contra-equity account , not an asset or an expense.)

Answer 4

Normal Balance Definition

Answer 5

This Site Might Help You.

RE:
What is a normal debit balance?
What is a normal debit balance? I don't get it. And which accounts have it?

Answer 6

Nickelru is wrong. Credits increase the balances of liabilities and revenue accounts (and for slightly more advanced, contra-asset accounts such as accumulated depreciation). Credits also increase capital/equity account balances. Credits decrease the balances of assets and expenses. Debits do the opposite. A debit will increase an asset, like cash or accounts receivable, and will also increase expenses. Debits reduce liability accounts. Here are some double-entry accounting entries for reference: 1) To make a payment on a loan (decrease liability, decrease cash). Notes Payable (debit) XXX Cash (credit) XXX 2) To record an expense that you haven't paid yet (increase expense, increase liability) Office Supplies Expense (debit) XXX Accounts Payable (credit) XXX This was always tough for me to learn because I always thought that a debit was a reduction and a credit is an increase (like on your bank account).

Answer 7

Assets such as Cash, Accounts Receivable, Fixed Assets or Property, Plant and Equipment and Prepaid Expenses normally carry a debit balance.

Liability accounts such as accounts payable, accrued expenses and Notes Payable normally carry a credit balance.

Hope that helps.

Answer 8

All assets and expenses have balances that are normally debits. I've attached a chapter on debits and credits for your reference.