When a transaction results in an account with a balance that isn't "normal," the "abnormal" balance should be corrected to the "normal" balance before copying the balance into the trial balance.

Question

Quizplus · Accepted Answer

The "abnormal" balance should be reported as it is in the trial balance; it reflects actual accounting figures and should not be altered to fit "normal" balance expectations. Corrections are made only if there's an error, not based on the nature of the balance.

When a Transaction Results in an Account with a Balance