Account Titles as to their Classification, Presentation and Normal Balance

Normal
Account Title Classification Statement of
Balance
Accounts Payable Current Liability Financial Position Credit
Accounts Receivable Current Asset Financial Position Debit
Accrued Revenue Current Asset Financial Position Debit
Accrued Salaries Payable Current Liability Financial Position Credit
Accumulated Depreciation Contra Account Financial Position Credit
Addition Paid in Capital Equity Financial Position Credit
Administrative Expenses OPEX Financial Performance Debit
Allowance for Doubtful
Contra Account Financial Position Credit
Accounts
Bad Debts Expense OPEX Financial Performance Debit
Bonds Payable Non-Current Liability Financial Position Credit
Buildings Non-Current Asset Financial Position Debit
Cash Current Asset Financial Position Debit
Common Stock Equity Financial Position Credit
Copyrights Intangible Asset Financial Position Debit
COGS COGS Financial Performance Debit
Current Asset/Long-
Debt Instruments Financial Position Debit
Term Investment
Deferred Revenue Current Liability Financial Position Credit
Depreciation Expense OPEX Financial Performance Debit
Discounts on Bonds
Contra Account Financial Position Debit
Payable
Nominal Account
Dividends Closed to Retained Retained Earnings Debit
Earnings
Dividends Payable Current Liability Financial Position Credit
Dividends Revenue Other Income Financial Performance Credit
Equipment Non-Current Asset Financial Position Debit
Fees Earned Revenue Financial Performance Credit
Freight-In COGS Financial Performance Debit
Freight-Out OPEX Financial Performance Debit
Gain on Disposal of Plant
Other Income Financial Performance Credit
Assets
Goodwill Intangible Asset Financial Position Debit
Nominal Account
Debit (Loss)
Income Summary Closed to Retained N/A
Credit (Profit)
Earnings
Income Tax Expense Income Tax Expense Financial Performance Debit
Income Tax Payable Current Liability Financial Position Credit
Insurance Expense OPEX Financial Performance Debit
Interest Expense Other Expense Financial Performance Debit
Interest Payable Current Liability Financial Position Credit
Interest Receivable Current Asset Financial Position Debit
Interest Revenue Other Income Financial Performance Credit
Inventory Current Asset Financial Position Debit
Land Non-Current Asset Financial Position Debit
Loss on Disposal Other Expense Financial Performance Debit
Mortgage Payable Non-Current Liability Financial Position Credit
Current/Non-Current
Notes Payable Financial Position Credit
Payable
Patents Intangible Asset Financial Position Debit
Preferred Stock Equity Financial Position Credit
Premiums on Bonds Non-Current Liability
Financial Position Credit
Payable – Adjunct
Prepaid Insurance Current Asset Financial Position Debit
Prepaid Rent Current Asset Financial Position Debit
Purchase Discount Contra Account Financial Position Credit
Purchase Returns and
Contra Account Financial Position Credit
Allowances
Purchases Current Asset Financial Position Debit
Rent Expense OPEX Financial Performance Debit
Rent Revenue Revenue Financial Performance Credit
Retained Earning Equity Financial Position Debit
Salaries and Wages OPEX Financial Performance Debit
Sales Discount Contra Account Financial Position Debit
Sales Return and
Contra Account Financial Position Debit
Allowances
Sales/Sales Revenue Revenue Financial Performance Credit
Service Revenue Revenue Financial Performance Credit
Supplies Current Asset Financial Position Debit
Supplies Expense OPEX Financial Performance Debit
Treasury Stock Equity Financial Position Debit
Unearned Service
Current Liability Financial Position Credit
Revenue
Utilities Expense OPEX Financial Performance Debit
Accruals/Accrued Accounts
An accrual pertains to:
Expenses: that should be reported now, but have not yet been recorded or paid
Revenues: that should be reported now, but have not yet been recorded nor has
the money been received

Deferrals/Deferred Accounts
A deferral occurs when a company has:
Expenses: paid out money that should be reported as an expense in a later
accounting period
Revenues: received money that should be reported as revenue in a later
accounting period

Adjunct Account
An adjunct account is an account in financial reporting that increases the book
value of a liability account. An adjunct account is a valuation account from which credit
balances are added to another account.

Contra Account
A contra account is used in a general ledger to reduce the value of a related
account when the two are netted together. A contra account's natural balance is the
opposite of the associated account. If a debit is the natural balance recorded in the
related account, the contra account records a credit.