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Why is the normal balance of an income account the same with that of a capital account?
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Why is a capital account has credit balance?
The normal balance in a capital account is a credit. Capital is a balance sheet account. Assets = Liabilities + Capital
What is the normal account balance of Income Summary?
It has no normal balance.
What is the normal balance of a additional paid-in capital account?
Additional Paid-in Capital is a normal credit balance account.
What is the normal balance of a capital account?
Capital account has credit balance as a normal balance of account as it is the amount company requires to return back to it's owner at the time of liquidation.
Is an increase in Capital Stock a credit in the normal balance of an account?
Yes capital stock has credit balance as a normal balance so increase is also has credit balance.
Which type of account has a normal credit balance?
All liabilities as well as income accounts has normal credit balance and also profit has credit balance.
Normal balance of an expense account?
All expenses have debit balance which reduces the profit of company and shown under income statement and all revenues are credit account which increases the income of company
Is paid in capital a debit or credit account?
Paid in capital is liability for business and like all liabilities it also has credit balance as normal balance.
Name all three types of accounts that have a normal credit balance?
Following are the accounts with normal credit balance: 1 - Net income 2 - Liabilities account 3 - Owners equity account
What is the normal balance of income summary?
It has no normal balance.
What is the normal balance of a withdrawal?
Drawings account has a normal balance as a reverse of owners equity account which is debit balance as a normal balance.
What is the normal balance of drawing?
Drawings is a contra account. Debit is the normal balance of Drawing account.
