Revenues Normal Credit Balance

An asset is normally a debit balance so a contra asset account such as accumulated depreciation is normally a credit balance.

Revenues normal credit balance. Contra asset normal balance. Recall that credit means right side. For asset and expense accounts the normal balance is a debit balance. Search for an answer or ask weegy.

Log in for more information. Assets formal definition the properties used in the operation or investment activities of a. Revenues have a normal credit balance. Contra revenue normal balance.

Therefore income accounts have a normal credit balance. Have a normal balance amount that is normally a debit balance or a credit balance have a type and are classified as an asset liability equity revenue expense or draw are either a balance sheet or income statement account major types of accounts. Whether the normal balance is a credit or a debit balance is determined by what increases that particular account s balance has. In a t account their balances will be on the right side.

These accounts normally have credit balances that are increased with a credit entry. Log in for more information. Therefore revenue is cash in so it s a dr to cash and a cr to the income line. This is the key to accounting and bookkeeping.

Updated 2 8 2015 2 10 51 pm. Revenues have a normal credit balance. To calculate the sales revenue the sales returns and the allowances must be subtracted from the old value. It is possible for an account expected to have a normal balance as a debit to actually have a credit balance and vice versa but these situations should be in the minority.

Revenue is normally a credit balance so a contra revenue account such as sales returns is normally a debit balance. In the asset accounts the account balances are normally on the left side or debit side of the account. Rent is a revenue account and like all revenue accounts it has credit balance as normal balance. Therefore the debit balances in the asset accounts will be increased with a debit entry.

Liability accounts will normally have credit balances and the credit balances are increased with a credit entry. Asked 2 3 2015 1 34 46 pm. For liability equity and revenue accounts the normal balance is a credit balance. Sales revenue has a normal credit balance meaning that a credit to a revenue account.