Question

The amounts that increase the Cash account are entered in A. the Debit column. B. the Credit column. C. both Debit and Credit columns. D. either Debits or Credit columns.

Answer 1

The correct answer is A, The Debit Column.

Step-by-step explanation:

When cash accounts increases, they amount is written on the debit side of the column. And when the cash accounts decreases, the amount is written on the credit side of the column. Under the cash account, Debit side means increase, and the Credit side means decrease. And when the balance of the cash account is to be written, it is written against the Owners Equity of the Balance Sheet.

Answer 2

The above answer can be explained as under -

The amounts that increase the cash account are entered in A. Debit column. As cash account is an asset. As asset has debit balance.

In order to increase the balance of an asset account we need to debit it and if we want to reduce the amount of an asset we need to credit it.

Thus, the amounts that increase the cash account are entered in the debit column of the cash account.