Rules of Debit and Credit as Applied to Balance Sheet

question 100

Essay

Rules of debit and credit as applied to balance sheet accounts
Items in the balance sheet are classified into three categories: assets, liabilities, and equity.
(A.) Identify by name two ledger accounts in each of the first two categories above (assets and liabilities) and one equity account. State whether each account would normally have a debit or credit balance.
(B.) Describe briefly the rules of debit and credit as applied to the three categories of balance sheet accounts: asset accounts, liability accounts, and equity accounts.

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