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
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One Response to “Normal Balances in General ledger for Buyer and Seller positions”

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