ACCOUNTING TUTORIALS
Positive Normal Balances of Accounts
In most cases the sum of all increase recorded in an account will be equal to or greater than the sum of increases recorded in account.
Therefore, the normal balance for all accounts is usually positive.
Take an asset account as an example. The total debits (increases) in an asset account will usually be greater than the credits (decreases.) This gives asset accounts a debit balance.
The table below indicates whether various kinds of account will normally have a debit or credit balance. The underlying assumption here is that each account will usually have a positive balance.
