The correct answer is purchase of stationary.
Key Points
You are viewing: Which Of The Following Accounts Usually Has A Debit Balance
- In the trial balance, accounts that usually have a debit balance are those representing assets, expenses, and losses.
- “Purchase of stationary” is an expense account. Expenses are costs incurred by a business, and they reduce the owner’s equity.
- Therefore, the “Purchase of stationary” account will typically have a debit balance in the trial balance, as it reflects the total amount spent on stationery purchases during a specific accounting period.
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Important PointsAccounting Balances:
- Debit (Dr) and Credit (Cr) are two fundamental terms in double-entry accounting.
- Debit represents an increase in assets or expenses and a decrease in liabilities, equity, or revenue.
- Credit represents an increase in liabilities, equity, or revenue and a decrease in assets or expenses.
Normal Balances:
- For different types of accounts, there are normal balances.
- Assets (like cash, inventory) typically have a debit (Dr) normal balance because they increase with debits.
- Liabilities (like loans, accounts payable) typically have a credit (Cr) normal balance because they increase with credits.
- Equity (like owner’s capital) usually has a credit (Cr) normal balance.
- Expenses (like rent, utilities) typically have a debit (Dr) normal balance because they represent costs and reduce equity.
- Revenues (like sales, interest income) usually have a credit (Cr) normal balance because they increase equity.
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Additional Information Trial Balance: A trial balance is a statement used to ensure that total debits equal total credits after posting transactions to the ledger. If all entries are recorded correctly, the sum of all debit balances should equal the sum of all credit balances, resulting in a “balanced” trial balance. However, some accounts, like expenses and assets, usually have debit balances, while others, like liabilities and equity, usually have credit balances.
Balancing Process: When errors occur, such as debiting an expense instead of crediting it, the trial balance won’t balance. To correct it, adjustments (journal entries) must be made. For example, if you accidentally debit an expense when you should have credited it, you’ll need to make a correcting entry that credits the expense account. The goal is to ensure that the fundamental accounting equation (Assets = Liabilities + Equity) remains balanced.
So, in the case of “Purchase of stationary,” it’s an expense account, and expenses normally have a debit balance because they reduce equity when incurred. If it’s incorrectly credited, it will need a correcting entry that debits the expense account to bring the trial balance back into balance.
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