Normal Balance

 

Normal Balance of different Types of Accounts are mentioned below:

 

 

Items

Normal Balance

Dr.

Cr.

Assets Debit Balance
Liabilities Credit Balance
Expenses Debit Balance
Revenue Credit Balance
Owner’s Equity Credit Balance
Drawing Debit Balance
Purchase Return Credit Balance
Sales Return Debit Balance
Accumulated Depreciation Credit Balance
Provision for Bad Debts Credit Balance

 

 

Example 1:

For each of the following items write Types of Accounts and Normal Balances:

Items

Types of Accounts

Normal Balance

Cash at bank Assets Dr
Financial charges paid Expense Dr
Accumulated Depreciation Contra Asset Cr
Stock in trade Assets Cr
Salaries payable Liability Cr
Advance deposit and prepayments Assets Dr
Carriage inward Expense Dr
Commission received Revenue Cr
Sundry debtors Assets Dr
Purchases Return/ Return outward Contra Expense Cr
Investment by Owner Owner’s Equity Cr
Bank charges (Dr) Expense Dr
Profit or Capital gain Owner’s Equity Cr
Provision for bad debts Contra Asset Cr
Cash in hand Assets Dr
Mark up (Cr) Revenue Cr
Sundry creditors Liability Cr
Transportation outward Expense Dr
Due from customers Assets Dr
Unearned Revenue Liability Cr
Deinvestment by owner Drawing Dr
Sales Return/ Return Inward Contra Revenue Dr
Outstanding wages Liability Cr

 

>>> Journal Entry description.

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