Final answer:
Equity does not have a normal debit balance; instead, it has a normal credit balance. Assets and Expenses normally have debit balances, while Liabilities and Equity typically have credit balances, ensuring that the accounting equation Assets = Liabilities + Equity remains balanced.
Step-by-step explanation:
Of the accounts listed, the one that does not have a normal balance as a debit is D. Equity. In double-entry bookkeeping, each financial transaction affects at least two accounts, and these accounts have either a debit (left side) or a credit (right side) normal balance. Assets and Expenses normally have debit balances, meaning that a debit transaction increases those accounts and a credit transaction decreases them. Conversely, Equity accounts typically have a normal credit balance. This means that when equity increases, it is credited, and when it decreases, it is debited. Income Distributed can either be an equity type account that also has a normal credit balance if it relates to distributions to owners or an expense if it's related to partnership income allocations, depending on the context provided.
In a T-account representation, assets are listed on the left side and increase with a debit, while liabilities and equity, which owe their value to external entities or owners, are listed on the right side and increase with a credit. This alignment helps ensure that the accounting equation, Assets = Liabilities + Equity, remains in balance. When a bank lists deposits as liabilities, it means that they owe these funds back to the depositors and must be ready to fulfill withdrawal requests, explaining why all the money may not be physically in the bank at any given time. Such understanding of how different accounts are treated in terms of normal balances is crucial in the realm of accounting and finance.