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Positive / Favorable / Normal Balance Side Of Accounts The normal balance side of an Account depends upon Types of Accounts in which their balances increase. Following are the normal balance sides for normal balances of Assets , Expenses , Liabilities , Owner’s Equity , Owner’s Capital , Owner’s Drawings and Revenue Accounts : (i) The positive, favorable, usual or normal balance side of any asset account is the debit side. (ii) The normal balance side of any expense account is the debit side. (iii) The normal balance side of an owner's drawing account is the debit side. (iv) The normal balance side of a dividend account is the debit side. (v) The normal balance side of any revenue account is the credit side. (vi) The normal balance side of a liability account is the credit side. (vii) The normal balance side of an owner's capital / owner’s equity account is the credit side.

An Account’s Balance Increases On The Same Side Is Called The Normal Balance Side (T/F) The balance of an Account increases on the same side as the Normal Balance Side is true (T) as it is the positive or favorable side for an account. So assets and expense accounts, owner’s drawing account and dividend accounts have normal balances on debit side and revenue, liabilities and equity accounts have normal balances on credit side.