Question

Which of the following ledger accounts, who have always credit balance?

(a) Capital account
(b) Discount Received account
(c) Purchase Return account
(d) All of these​

Answer 1

B)Discount Received account

Answer 2

Answer:

The correct option is Option (c) Purchase return Account.

Explanation:

• Purchase returns account is a contra expense account. It will either has a credit balance or a zero balance.

• The capital account is generally credit balance, but more drawings or losses can result in a debit balance.

• Discount account is a nominal account and hence, can have a credit or debit balance.

Therefore, Purchase return account will always have a credit balance.

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