BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Assets, expenses, losses and the owner’s drawing account will normally have debit balances. Their balances will increase with a debit entry, and will decrease with a credit entry.

Detailed explanation-2: -Accounts that normally have a debit balance include assets, expenses, and losses. Examples of these accounts are the cash, accounts receivable, prepaid expenses, fixed assets (asset) account, wages (expense) and loss on sale of assets (loss) account.

Detailed explanation-3: -Assets and expenses have natural debit balances. This means that positive values for assets and expenses are debited and negative balances are credited. For example, upon the receipt of $1, 000 cash, a journal entry would include a debit of $1, 000 to the cash account in the balance sheet, because cash is increasing.