BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Therefore, asset, expense, and owner’s drawing accounts normally have debit balances. Liability, revenue, and owner’s capital accounts normally have credit balances.

Detailed explanation-2: -The normal balance for the liability, revenue, and owner’s capital accounts is a credit balance. Liabilities and owner’s capital accounts are permanent accounts that balance out the debit accounts of assets and hold a credit balance.

Detailed explanation-3: -Owner’s capital is also known as owner’s equity which represents the net assets held, which is the amount left over after all the assets (debit balance items) have been sold and the creditors (liabilities or credit balances) have been paid.

Detailed explanation-4: -Definition of ‘normal balance’ The normal balance of an account is the side of the account that is positive or increasing. The normal balance for asset and expense accounts is the debit side, while for income, equity, and liability accounts it is the credit side.