Which types of accounts normally carry debit balances in double entry accounting?

Introduction / Context:
In double entry accounting every account has a normal balance, either debit or credit, depending on its type. Knowing which accounts normally carry debit balances is fundamental for recording journal entries correctly. This knowledge also helps students quickly recognise errors in trial balances and financial statements. The question checks understanding of the relationship between assets, liabilities, equity, revenues, expenses and dividends in the accounting equation.

Given Data / Assumptions:

• The system in use is standard double entry accounting.
• Assets, dividends and expenses are candidate accounts for debit balances.
• Common stock represents owners equity, and revenues represent income.
• The question is conceptual and does not involve any numerical calculation.

Concept / Approach:
The basic accounting equation is Assets = Liabilities + Equity. In normal practice, assets have debit balances and are increased by debits and decreased by credits. Liabilities and equity accounts, including common stock and retained earnings, have credit balances. Revenues increase equity and therefore also have a normal credit balance. Expenses and dividends reduce equity and therefore carry normal debit balances. The correct option must therefore list assets, dividends and expenses together as accounts that usually show debit balances in the ledger.

Step-by-Step Solution:
Step 1: Recall that a normal balance is the side, debit or credit, where increases are recorded for a given account type. Step 2: List the basic rule: assets and expenses are increased by debits, while liabilities, equity and revenues are increased by credits. Step 3: Note that dividends are a distribution out of equity and reduce retained earnings, so they behave like expenses and take a debit balance. Step 4: Recognise that common stock and revenues are equity related and therefore normally have credit balances. Step 5: Choose the option that combines assets, dividends and expenses as the group of accounts with normal debit balances.

Verification / Alternative check:
To check the answer, think about common journal entries. When a business buys equipment for cash, the equipment account, which is an asset, is debited and cash, also an asset, is credited, but overall assets carry a debit nature. When revenue is earned on credit, accounts receivable is debited and revenue is credited, showing that revenues have a credit nature. When a salary expense is recorded, salaries expense is debited and cash or salaries payable is credited, again showing that expenses are debit oriented. When dividends are declared, dividends or drawings are debited and dividends payable or retained earnings are credited. This pattern confirms that assets, dividends and expenses normally have debit balances.

Why Other Options Are Wrong:
Option A is wrong because common stock is an equity account with a normal credit balance, not a debit balance. Option C is incorrect since revenues have a normal credit balance. Option D cannot be correct because it includes combinations that contradict the rules for common stock and revenues. Option E is clearly wrong because revenues and common stock are both normally credit balance accounts and would not be grouped under debit balances.

Common Pitfalls:
Many learners try to memorise rules mechanically instead of understanding the accounting equation. This can lead to confusion between revenue and expense accounts. A frequent mistake is to think that all income statement accounts are debit balance accounts simply because they affect profit. Another pitfall is forgetting that dividends reduce equity and therefore behave like expenses. Linking each account type to how it affects owners equity helps keep the normal balance rules clear in mind during exams and real world accounting work.

Final Answer:
Assets, dividends and expenses.