In your organisation, debit balance is the balance of the each account which will show debit side at the close of account. If debit side is more than credit side, it will surely have debit balance. If you have bank account. If your bank shows your account's credit balance, still it will show your bank's debit balance.
Following account should have the debit balance :
1. Assets Accounts : Both current assets and fixed assets account will have debit balance. In this, we can include account receivable accounts, advance expenses accounts, your fixed deposit accounts and your building account and your furniture account and other your fixed assets accounts. You have debit balance of such accounts because you have right to claim amounts in it. For example, you have debit balance of Rs. 10,000 of furniture account, it means, you have to right to get Rs. 10,000 or current market price of such furniture due to current depreciation.
2. Drawing Accounts : When you take the capital for your personal use, it will become contra-capital account. So, its balance will show debit.
3. Expenses and Losses Accounts : All the expenses and losses accounts should have the debit balance and all such account will transfer to profit and loss account and then we have to close these accounts.
4. Contra - Liability Accounts : Discount received on creditors is contra liability account which will have debit balance.
5. Contra - Revenue Accounts : Sales return account is contra-revenue account which will have debit balance.
Following account should have the debit balance :
1. Assets Accounts : Both current assets and fixed assets account will have debit balance. In this, we can include account receivable accounts, advance expenses accounts, your fixed deposit accounts and your building account and your furniture account and other your fixed assets accounts. You have debit balance of such accounts because you have right to claim amounts in it. For example, you have debit balance of Rs. 10,000 of furniture account, it means, you have to right to get Rs. 10,000 or current market price of such furniture due to current depreciation.
2. Drawing Accounts : When you take the capital for your personal use, it will become contra-capital account. So, its balance will show debit.
3. Expenses and Losses Accounts : All the expenses and losses accounts should have the debit balance and all such account will transfer to profit and loss account and then we have to close these accounts.
4. Contra - Liability Accounts : Discount received on creditors is contra liability account which will have debit balance.
5. Contra - Revenue Accounts : Sales return account is contra-revenue account which will have debit balance.
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