Which of the following accounts has a debit balance?
Question 1 Report
Which of the following accounts has a debit balance?
Answer Details
An account having a debit balance means that the total amount of all the debits made in the account is greater than the total amount of all the credits made in the account. Out of the options given, the account that has a debit balance is "share discount".
"Share discount" is a type of account used to record the difference between the face value of shares and the amount actually received on their issue, when the issue price is less than the face value of the shares. When a company issues shares at a discount, the difference between the issue price and face value is considered as an expense for the company, and is recorded in the share discount account. Since the discount is an expense, it is debited to the share discount account, resulting in a debit balance in the account.
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