Accounts Receivable is decreased with a debit and Cash is increased with a debit. The balance of an account increases on the same side as the normal balance side. Below is a basic example of a debit and credit journal entry within a general ledger.

In the accounting equation, assets appear on the left side of the equal sign. More about double-entry accounting and an account’s normal balance. 13 The company paid $11,600 cash to settle the account payable created on April 3. Let’s consider the following example to better understand abnormal balances. The normal balance side of any expense account is ____. The normal balance side of any revenue account is ____. When cash is paid for supplies, the supplies account is increased by a debit.

Do Contra Accounts Have Debit or Credit Balances? in any liability account are shown on a T account’s ____. Decreases in an asset account are shown on a T account’s ____. An amount recorded on the left side of a T account is ____.

These daybooks are not part of the double-entry bookkeeping system. The information recorded in these daybooks is then transferred to the general ledgers, where it is said to be posted. Not every single transaction needs to be entered into a T-account; usually only the sum for the day of each book transaction is entered in the general ledger. Before the advent of computerized accounting, manual accounting procedure used a ledger book for each T-account. The collection of all these books was called the general ledger.


Asset accounts normally have debit balances and the debit balances are increased with a debit entry. However, that $1.4 billion is used to reduce the balance of gross accounts receivable.


All Income and expense accounts are summarized in the Equity Section in one line on the balance sheet called Retained Earnings. This account, in general, reflects the cumulative profit or loss of the company. The Normal Balance or normal way that an asset or expenditure is increased is with a debit .

Understanding a Contra Account

Liabilities normally carry a credit balance while assets carry a debit balance. Expenses carry a debit balance while incomes carry a credit balance.

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