How do we tell the normal balance from financial documents?

Accounting Dec 16, 2020

Expert Solution

For an easier recording of financial transactions, the normal balances oft he accounts shall first be known to the book keeper. The normal balances of the accounts are the account balances to which increases in the said accounts are recorded. Therefore, normal balance of asset accounts are debit while credit for liabilities and equity accounts. Debit or credit does not necessarily mean an increase or decrease

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