Normal Balance Of Revenue

5 credit balance of revenue account.

Normal balance of revenue. Accounts with balances that are the opposite of the normal balance are called contra accounts. Cr or debit abbrev. Let s illustrate revenue accounts by assuming your company performed a service and was immediately paid the full amount of 50 for the service. What is the normal balance for the service revenue account.

An asset is normally a debit balance so a contra asset account such as accumulated depreciation is normally a credit balance. Contra asset normal balance. The contra accounts noted in the preceding table are usually set up as reserve accounts against declines in the usual balance in the accounts with which they are paired. To increase the value of an account with normal balance of credit one would credit the account.

Using the normal balance. It is part of double entry book keeping technique. A contra account contains a normal balance that is the reverse of the normal balance for that class of account. What is the normal balance for the service revenue account.

Beginning balance of concession revenue ending balance of service revenue etc. The increase or surplus of asset account is the normal balance of asset account. Hence contra revenue accounts will have debit balances. Revenue is normally a credit balance so a contra revenue account such as sales returns is normally a debit balance.

To calculate the sales revenue the sales returns and the allowances must be subtracted from the old value. 3 years ago. Sales revenue has a normal credit balance meaning that a credit to a revenue account. An account has either credit abbrev.

Comment related user ask. The account type and normal balance of unearned revenue would be a revenue from mba 617 at st. Home green board miscellaneous question. Contra revenue normal balance.

Normal balance is the accounting classification of an account.