1st year Accounting Class 10 Find out Assets, Liability or Owner's Equity

Thursday, November 21, 2019

01)the following accounts state whether it is an asset, liability or owner’s equity; also state whether it would normally have a debit or credit balance:

1. Office equipment 2. Tariq Capital 3. Notes receivable

4. Cash 5. Drawings 6. Notes payable

7. Office supplies 8. Prepaid insurance

Account Title	Head of Account	Normal Balance
1. Office equipment	Asset	Debit
2. Tariq Capital	Owner’s equity	Credit
3. Notes receivable	Asset	Debit
4. Cash	Asset	Debit
5. Drawings	Owner’s equity (Contra)	Debit
6. Notes payable	Liability	Credit
7. Office supplies	Asset	Debit
8. Prepaid insurance	Asset	Debit

02) the following accounts state whether they are asset, liability, owner’s equity, expense or income. Also state whether they would normally have a debit or credit balance:

1. furniture 2. Bank 3. Prepaid advertising

4. note receivable 5. Purchases 6. Unearned Commission revenue

7. Purchase Discount 8. Office equipment 9. Sales discount

10. Unexpired insurance 11. Drawings 12. Bank overdraft

13. Capital 14. Cash 15. Office supplies

16. Merchandise inventory 17. Unexpired rent 18. Accounts receivable

19. Accounts payable 20. Salaries payable 21 accrued expense

22. Building 23 sale

Account Title	Head of Account	Normal Balance
Furniture	Asset	Debit
Bank	Asset	Debit
Prepaid advertising	Asset	Debit
note receivable	Asset	Debit
Purchases	Expense	Debit
Unearned Commission revenue	Liability	Credit
Purchase Discount	Expense	Credit
Office equipment	Asset	Debit
Sales discount	Revenue /Income	Debit
Unexpired insurance	Asset	Debit
Drawings	Owner’s Equity	Debit
Bank overdraft	Liability	Credit
Capital	Owner’s Equity	Credit
Office supplies	Asset	Debit
Merchandise inventory	Asset	Debit
Unexpired rent	Asset	Debit
Accounts receivable	Asset	Debit
Accounts payable	Liability	Credit
Salaries payable	Liability	Credit
accrued expense	Liability	Credit
Building	Asset	Debit
Sale	Revenue /Income	Credit
Sale return	Revenue /Income	Debit