D. Commission earned
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Where the total of the debit side is more than the credit side therefore the difference is the debit balance and is placed credit side as “ by balance c/d “
A furniture account that is an asset has a debit balance.
Debit balance may arise due to timing differences in which case income will be accrued at the year’s end to offset the debit.
The amount is shown in the record of a company s finances, by which its total debits are greater than its total credits.
The account which has debit balances are as follows:
Land, furniture, building machinery, etc
Salary, rent, insurance, etc
Bad debts, loss by fire, etc
Personal drawings of cash or assets
Balances of these accounts
The account has credit balances as follows:
Creditors, bills payable, etc
Salary received, interest received, etc
Dividends, interest, etc
Here are some examples showing the debit balances and credit balances of the accounts :