ACCA Applied Knowledge · Financial Accounting · Double-entry bookkeeping principles including the maintenance of accounting records
Which of the following account balances would normally be a debit balance in the general ledger of a trading company?
Drawings normally carries a debit balance because it represents a reduction in the owner's equity. Trade payables, revenue and discounts received are liabilities or income, which normally have credit balances.
- ADiscounts received
- BDrawingsCorrect
- CTrade payables
- DRevenue
Explanation
Drawings reduce equity, so they are debited. Discounts received are income, trade payables are liabilities and revenue is income, all normally credit balances. Drawings is therefore the only normal debit balance.
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