Question

Select the most appropriate alternatives from those given below and rewrite the sentence :

Machinery A/c shows ________ balance.
a) credit
b) debit
c) positive
d) negative

Answer 1

Machinery A/c shows debit balance.

Explanation:
Machinery A/c shows debit balance. It is a real account because these accounts include all the assets of a business whose value can be measured in terms of money. Thus, all the assets of the business are recorded following the rule of real accounts, i.e. “Debit what comes in” and ”Credit what goes out”. Thus, Machinery A/c shows a debit balance.