In trial balance, which accounts with normal balance are recorded at t...
The trial balance is a statement that contains a list of all the general ledger accounts and their respective debit or credit balances. It is used to ensure that the total of all debits equals the total of all credits, which is a fundamental principle of double-entry bookkeeping.
Accounts with a normal credit balance are typically recorded on the credit side of the trial balance. These accounts include liabilities, equity, and revenue accounts. The accounts with a normal debit balance, such as assets and expenses, are recorded on the debit side.
Now, let's analyze the options given in the question to determine which ones have a normal balance that is recorded on the credit side of the trial balance.
a) Bank account:
The bank account is an asset account. Assets normally have a debit balance and are recorded on the debit side of the trial balance. Therefore, option 'a' is incorrect.
b) Equipment account:
The equipment account is also an asset account. As mentioned earlier, asset accounts have a normal debit balance and are recorded on the debit side of the trial balance. Hence, option 'b' is incorrect.
c) Accrued expenses account:
Accrued expenses are liabilities that arise from expenses that have been incurred but not yet paid. Liabilities have a normal credit balance, and therefore, the accrued expenses account is recorded on the credit side of the trial balance. This means that option 'c' is correct.
d) Cash account:
The cash account is another asset account. As with other asset accounts, it also has a normal debit balance and is recorded on the debit side of the trial balance. Consequently, option 'd' is incorrect.
In conclusion, the correct option is 'c' because the accrued expenses account is the only account with a normal credit balance that is recorded on the credit side of the trial balance.
In trial balance, which accounts with normal balance are recorded at t...
Accrued expenses account with normal balance is shown at the credit side of a trial balance.