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Debit Balances — Accounting Keypoint

Debit Balances

Debit Balances in a ledger account may be categorized as assets, expenses or losses. If they represent debts on tangible expenditures, such as furniture and fittings, plants, machinery etc, they can be regarded as assets. If eventually their values expire in any accounting period, they are expenses or losses (assets, expenses and losses; which are debit balances).

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