Question

1:

-Balance of account = Debits – __________

-Asset accounts have a normal __________ balance.

-The dividends account has a normal __________ balance.

-Revenue accounts have a normal __________ balance.

-Expense accounts have a normal __________ balance.

-Liabilities and retained earnings accounts normally have a __________ balance.

-The retained earnings account includes income statement accounts and the __________ account.

Answer 1

1. Debit - Credit ( as debit - credit gives us a balance of any account)

2. Debit Balance (Assets as debit items)

3. Credit (paying dividend is a liablity hence credit)

4. Credit ( income account have credit balance)

5.Debit ( expense are debit in nature)

6.Credit (libilities have credit nature)

7. Other Reserves  ( P&L balance and other reserves become part of retained earnings like general reserve etc.)