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Normal Balance of different Types of Accounts are mentioned below:

List of Normal Balances

5Owner’s EquityYes
7Purchase ReturnYes
8Sales ReturnYes
9Accumulated DepreciationYes
10Provision for Bad DebtsYes


Example 1:

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

SNAccountsTypes of AccountsNormal Balance
1Cash at bankAssetDebit
2Financial charges paidExpenseDebit
3Accumulated DepreciationContra Fixed AssetCredit
4Stock in tradeAssetDebit
5Return InwardContra RevenueDebit
6Advance deposit and prepaymentsAssetDebit
7Carriage inwardExpenseDebit
8Commission receivedRevenueCredit
9Sundry debtorsAssetDebit
10Purchases ReturnContra ExpenseCredit
11Investment by OwnerOwner's EquityCredit
12Bank charges (Dr)ExpenseDebit
13Profit Owner's EquityCredit
14Provision for bad debtsContra Account ReceivableCredit
15Cash in handAssetDebit
16Mark up (Cr)RevenueCredit
17Sundry creditorsLiabilityCredit
18Transportation outwardExpenseDebit
19Return outwardContra ExpenseCredit
20Due from customersAssetDebit
21Capital gainOwner's EquityCredit
22LossOwner's EquityCredit
23Unearned RevenueLiabilityCredit
24Salaries payableLiabilityCredit
25Deinvestment by ownerDrawingDebit
26Sales ReturnContra RevenueDebit
27Outstanding wagesLiabilityCredit


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Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.