Question

REVISION EXERCISES
ACCOUNTS CLASSIFICATION AND NORMAL BALANCE OF ACCOUNTS			NAME:
	Accounts name	Assets/Liabilities/Equity/income/Expense	normal balance
			(DR/CR)
1	Cash at Bank
2	Loan Payable
3	Interest payable
4	Salaries expense
5	Prepaid insurance
6	Accounts receivable
7	Office equipment
8	Accumulated depreciation-office equipment
9	Advertising expense
10	Depreciation expense-office equipment
11	Electricity expense
12	Land
13	Salaries payable
14	Building
15	Accumulated depreciation-building
16	Goodwill
17	Sales revenue
18	Interest income
19	Marketing expenses
20	Inventory
21	Allowance for doubtful debts
22	Utilities expense
23	Unearned revenue
24	Insurance expense
25	Rent expense
26	Ordinary share
27	Retained earnings/profit
		TOTAL MARKS

Answer 1

S. No	Accounts Name	Dr/Cr	Assets/Liabilties/Equity/Income/Expenses	Comment If any
1	Cash at Bank	Dr	Asset	-
2	Loan Payable	Cr	Liability	-
3	Interest payable	Cr	Liability	-
4	Salaries expense	Dr	Expense	-
5	Prepaid insurance	Dr	Asset	-
6	Accounts receivable	Dr	Asset	-
7	Office equipment	Dr	Asset	-
8	Accumulated depreciation-office equipment	Cr	Liability	Accumulated Depreciation is a BS Item.
9	Advertising expense	Dr	Expense	-
10	Depreciation expense-office equipment	Dr	Expense	Depreciation is a PL item.
11	Electricity expense	Dr	Expense	-
12	Land	Dr	Asset	-
13	Salaries payable	Cr	Liability	-
14	Building	Dr	Asset	-
15	Accumulated depreciation-building	Cr	Liability	Accumulated Depreciation is a BS Item.
16	Goodwill	Dr	Asset	-
17	Sales revenue	Cr	Income	-
18	Interest income	Cr	Income	-
19	Marketing expenses	Dr	Expense	-
20	Inventory	Dr	Asset	-
21	Allowance for doubtful debts	Cr	Liability	It is also considered as a contra asset, because it is generally adjusted from Debtors in balance sheet. But its true nature is Liability hence classified as Liability.
22	Utilities expense	Dr	Expense	-
23	Unearned revenue	Cr	Liability	-
24	Insurance expense	Dr	Expense	-
25	Rent expense	Dr	Expense	-
26	Ordinary share	Cr	Equity	-
27	Retained earnings/profit	Cr	Equity
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