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.

Detailed explanation-2: -Definition of ‘normal balance’ The normal balance for asset and expense accounts is the debit side, while for income, equity, and liability accounts it is the credit side. An account’s assigned normal balance is on the side where increases go because the increases in any account are usually greater than the decreases.

Detailed explanation-3: -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-4: -An account is debited either to increase the asset balance or to decrease the liability balance. Usually an expense or any asset addition or a reduce in the revenue, or liabilities are termed as debits.