Q91
The normal balance of capital account is
A.
Credit balance
AnswerB.
Debit balance
C.
Cash balance
D.
Neither debit nor credit balance
Answer: Option A
Solution
Answer: Option A
Solution:
The normal balance of capital account is Credit balance. Normal balance is the side where the balance of the account is normally found. Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases capital .