On which side do assets, liabilities, equity, revenues and expenses have normal balances?



Q6. Normal balances
On which side do assets, liabilities, equity, revenues and expenses have normal balances?

A6. Normal balance of an account refers to the side on which an increase in that account is recorded.

Assets + Expenses = Liabilities + Equity + Revenues
(1) Asset accounts have normal balances on the debit side.
(2) Expense accounts have normal balances on the debit side.
(3) Liability accounts have normal balances on the credit side.
(4) Equity accounts have normal balances on the credit side.
(5) Revenue accounts have normal balances on the credit side.

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