Accounting and Finance Foundations

Unit 5

Accounting and Finance Foundations Unit 5: Accounting Terminology 362

Accounting Terminology Student Guide

Chapter 14

Normal Balance SheetLesson 14.3

Use this as a guide to help you learn the Normal Balances of accounts.

Normal Balance Worksheet

Assets = Liabilities + Owner’s Equity

Cash, Prepaid Ins., Supplies, Acct. Rec.

or any other asset

ANY ASSET

Debit Credit

Increase Decrease

NB

+ –

Capital

Debit Credit

• 
  
  
  
  • NB
  
  
  
  

Any Liability (Acct.Pay.)

Debit Credit

• 
  
  
  
  • NB
  
  
  
  

Sales (Rev.) Affects OE

Rec.cash, sold services

Debit Credit

• 
  
  
  
  • NB
  
  
  
  

Expenses and Withdrawal

Affect OE–

Debit Credit

+ –

NB

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