Question

For each of the following accounts, indicate the effect of debit or credit on the account and normal balance?

1) Debit - Increase, Credit - Decrease, Normal Balance - Debit
2) Debit - Decrease, Credit - Increase, Normal Balance - Credit
3) Debit - Increase, Credit - Decrease, Normal Balance - Credit
4) Debit - Decrease, Credit - Increase, Normal Balance - Debit

Answer 1

The effect of debit or credit on an account and its normal balance depends on the specific account. Generally, debit increases the balance of a debit-normal account, while credit decreases it. On the other hand, credit increases the balance of a credit-normal account, while debit decreases it.

Step-by-step explanation:

1) Debit - Increase, Credit - Decrease, Normal Balance - Debit

2) Debit - Decrease, Credit - Increase, Normal Balance - Credit

3) Debit - Increase, Credit - Decrease, Normal Balance - Credit

4) Debit - Decrease, Credit - Increase, Normal Balance - Debit