Liabilities, revenue, and owner's capital accounts normally have credit balances.
Example of Accounts Where Credit is Not the Normal Balance Accounts where a credit balance is NOT the normal balance include the following: Asset accounts (other than contra asset accounts such as Allowance for Doubtful Accounts and Accumulated Depreciation) Expense accounts (other than a contra expense account)
Normal balance of a Capital account is credit. Normal balance of a Drawing account is debit.
Answer and Explanation: Explanation: The sales account has a credit balance because the sales account is a revenue type account.
Definition of 'normal balance' The normal balance of an account is the side of the account that is positive or increasing. The normal balance for asset and expense accounts is the debit side, while for income, equity, and liability accounts it is the credit side.
Accounts Receivable will normally (In your class ALWAYS) have a debit balance because it is an asset.
Accounts that normally have a debit balance include assets, expenses, and losses. Examples of these accounts are the cash, accounts receivable, prepaid expenses, fixed assets (asset) account, wages (expense) and loss on sale of assets (loss) account.
Each asset account has a normal credit balance. Each liability account has a normal debit balance. The balance of an account increases on the same side as the normal balance side.
Assets, dividends and expenses have normal debit balances.
Liability, expense, and capital accounts all have normal credit balances.