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Which accounts normally have debit balances?

Author:
Harold Averkamp, CPA, MBA

Definition of Debit Balance

In accounting, a debit balance refers to a general ledger account balance that is on the left side of the account. This is often illustrated by showing the amount on the left side of a T-account.

Examples of Accounts with Debit Balances

The following general ledger account classifications normally have debit balances:

The double-entry system requires that the general ledger account balances have the total of the debit balances equal to the total of the credit balances. This occurs because every transaction must have the debit amounts equal to the credit amounts. For example, if a company borrows $10,000 from its local bank, the company will debit its asset account Cash for $10,000 since the company’s cash balance is increasing. The same entry will credit its liability account Notes Payable for $10,000 since that account balance is also increasing.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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