Normal balance

Definition

The side (debit or credit) on which an account ordinarily carries a positive balance. Assets and expenses are normal-debit; liabilities, equity, and revenue are normal-credit.

Long reference

Handbook

Normal Balances

Citations, procedures, and worked examples for normal balance.

Related terms

Debit

An entry recorded on the left side of an account. Increases assets and expenses; decreases liabilities, equity, and revenue.

Credit

An entry recorded on the right side of an account. Decreases assets and expenses; increases liabilities, equity, and revenue.

All terms More in Accounting foundations