Which Accounts Normally Have Credit Balances / Debit Balances

Those accounts which have credit balances are Liabilities, Equity, Net Profits and Revenues while Assets, Expenses, Net Losses and Drawings or Dividend (Contra Equity Account) have debit balances normally. In fact, Expenses and Revenues Accounts are having no balances. The Ledgers of income and expenses accounts are prepared to to find the closing value and, finally, these are closed to Income And Summary Statement at the time of preparing Closing Journal Entries at the end of the accounting period. All the assets, liabilities and equity are shown on balance sheet on a particular date of time.

All 5 Types of Accounts or Pillars of Accounting such as Assets, Liabilities, Equity, Expenses and Revenues are debited and credited according to the Rules of Debit And Credit.

A Credit Balance is Not a Normal Balance for Which Accounts

A Credit Balance is not usual for Assets, Expenses and Drawings or Dividends accounts

A Debit Balance is Not A Normal Balance for Which Accounts

It is for Liabilities, Revenues and Net Profits.