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Which of the following accounts has a credit balance?

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Accounts - Principles of Accounts WAEC 2015

Which of the following accounts has a credit balance?

  • Capital checkmark
  • Cash
  • Drawings
  • Premises

The correct answer is: A

Explanation

Normal balance is the side where the balance of the account is normally found. Asset accounts normally have debit balances, while liabilities and capital normallyhave credit balances. Income has a normal credit balance since it increasescapital . 

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