Why Do Expense Accounts Also Have Debit Balances Or Credit Balances?
The Debit And Credit Balances Of Expense Accounts As Expe nses are Temporary Accounts so these have no balances at the end of the accounting period, so these have neither Debit B alance nor Credit B alance at the end of the accounting period. However, the debit balance is normal or favorable or positive balance for expenses and credit balance is unfavorable or negative for expense in a ledger account. When expenses increase, we debit these accounts and when these decrease, we credit these according to the Rules of Debit And Credit . There are some special reaso ns due to which expenses accounts are credited rather than debited due to some reasons such as expenses accounts are decreasing, in case of reclass entry and other reasons.