Which Set Of Accounts Below Would Have A Normal Debit Balance?

The correct option is (A), as all of these accounts have normal debit or usual debit balances. Here these Accounts include Expenses, Owner’s Withdrawals / Drawings and Cash. All the expenses are debited when these are incurred, so these have positive, usual or favorable balances on debit side of T-Account.

Owner’s Withdrawals are the withdrew of money or goods from the business for his own personal use and debited when these are created. These are the reversal of owner’ capital. So, withdrawals accounts have debit balances normally and increase on this side of a T-Account. Due to withdrawals, the cash or goods are going out of the business and as a result, the cash is decreasing and goods stored in the godown are also decreasing.

Cash account also has normal debit balance. Cash, as a Current Asset, is increasing on debit of its t-account. It is decreasing on the credit side. If it has credit balance then it is not a favorable balance which shows that the business has no cash to pay bills or meet expenses or to make purchases. The business now faces money owing situation i.e., it has become liable to pay the amount of cash to creditors.

The options B, C and D are incorrect choices here as Unearned Rent, Revenues and Owner’s Capital have normal balance on credit of their T-Account. Unearned, which is a Current Liability, represents the amount of rent which the business received in advance but the services are not performed, so it is unearned rent for the business. Revenues have credit balance normally. These increase on credit side of their T-Account when the business earned it. Owner’s capital has credit normal balance. When the owner invested money into the business, it increases on credit side of its T-Account. It decreases when there is a business loss or when the owner withdrew goods or goods from the business for private use.