Question

Fill in the blanks with correct alternative and rewrite the statements :

Sales account always shows ________ balance.
a) debit
b) credit
c) adverse
d) specific

Answer 1

Sales account always shows credit balance.

Explanation:
Sales Account reflects the amount of revenue earned by the sale of goods/services of a business. Thus, it is an income for the business and according to the rule of accounting, all incomes are to be credited and all expenses are to be debited. Thus, a Sales Account always shows credit balance.