Normal Balance Side Of Any Revenue Account

The normal balance side of an owner s drawing account is the debit side.

Normal balance side of any revenue account. The normal balance side of any revenue account is the credit side. Side which increases that account. Is it the decrease side the entry side increase side or either side. The normal balance side of any expense account is the debit side.

I am having a test and this was one of the questions that is on the test. The normal balance of any account is the balance debit or credit which you would expect the account have and is governed by the accounting equation. Hence contra revenue accounts will have debit balances. Accounts with balances that are the opposite of the normal balance are called contra accounts.

Increases in an expense account are shown on a t account s a debit side b credit side c right side d none of these a debit side. The normal balance of any account is the a. A contra account contains a normal balance that is the reverse of the normal balance for that class of account. 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.

The double entry system requires that each transaction must be recorded 49. Each of the accounts in a trial balance extracted from the bookkeeping ledgers will either show a debit or a credit balance. The normal balance side of any revenue account is the a debit side b credit side c left side d none of these b credit side. Information in a journal includes the debit and credit parts of each transaction recorded in one place.

Unlike other accounts revenue accounts are rarely debited because revenues or income are usually only generated. My question is the normal balance side of any account is also its. At a corporation the credit balances in the revenue accounts will be closed and transferred to retained earnings which is a stockholders equity account it may be helpful to think of the accounting equation assets liabilities owner s equity to understand why an asset shown on the left side of the accounting equation will normally have its account balance on the left side or debit. The answer that i picked was increase side is this the correct side.

Side which decreases that account. Let s illustrate revenue accounts by assuming your company performed a service and was immediately paid the full amount of 50 for the service. For example a contra asset account such as the allowance for doubtful accounts contains a credit balance that is.