BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -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.

Detailed explanation-2: -Generally, asset account balances are debit balances. This means they are increased with a debit entry (the left side of a T-account) and decreased with a credit entry on the right side of the account balance.

Detailed explanation-3: -Asset accounts normally have debit balances and the debit balances are increased with a debit entry. Remember that debit means left side. In the accounting equation, assets appear on the left side of the equal sign. In the asset accounts, the account balances are normally on the left side or debit side of the account.

Detailed explanation-4: -A debit increases the balance of an asset, expense or loss account and decreases the balance of a liability, equity, revenue or gain account. Debits are recorded on the left side of an accounting journal entry.

Detailed explanation-5: -You usually don’t have a credit balance on asset accounts because by definition that would make them a liability, but there is an asset account specifically designed to carry credit balances. They’re called contra asset accounts.