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 t...