Normal Balances in General ledger for Buyer and Seller positions

These are the normal balances in the general ledger when entering

data in individual accounts. Students should take note that the returns and allowances are all

going to reduce their respective sales or purchases accounts. These are contra accounts

for their respective revenue or purchase account.

NORMAL BALANCES
BUYER		SELLER
Purchases	dr	Sales	cr
Purchase discount	cr	Sales discount	dr
Purchase return	cr	sales return	dr
Purchase allowance	cr	sales allowance	dr