What account shows credit balance?
Jackson Reed
Updated on February 01, 2026
A credit balance is normal and expected for the following accounts: Liability accounts such as Accounts Payable, Notes Payable, Wages Payable, Interest Payable, Income Taxes Payable, Customer Deposits, Deferred Income Taxes, etc. Hence, a credit balance in Accounts Payable indicates the amount owed to vendors.
What does it mean when an account is credited?
Credited to your account means amount has been deposited to your account(this will be your income). Debited from your account means withdrawn from your account(This will be your expense).
When an account is said to have debit balance and credit balance?
When the total of debits in an account exceeds the total of credits, the account is said to have a net debit balance equal to the difference; when the opposite is true, it has a net credit balance….The five accounting elements.
| ACCOUNT TYPE | DEBIT | CREDIT |
|---|---|---|
| Dividends | + | − |
| Liability | − | + |
| Revenue | − | + |
| Common shares | − | + |
What does account temporarily credited mean?
Temporary Credit is processed so that financial charges are not levied to your Credit Card / Savings Account during the period of investigation. Once the matter is resolved the amount will either be debited or credited back to the account depending on the outcome of the investigation.
What does debit and credit balance mean?
On a balance sheet or in a ledger, assets equal liabilities plus shareholders’ equity. An increase in the value of assets is a debit to the account, and a decrease is a credit.
What does a credit balance mean in accounting?
In accounting, a credit balance is the ending amount found on the right side of a general ledger account or subsidiary ledger account. (Therefore, a debit balance in a liability account indicates that the company has paid more than the amount owed, has made an incorrect entry, etc.)
Where do I find my credit balance in my account?
Essentially, a “credit balance” refers to an amount that a business owes to a customer. It’s when a customer has paid you more than the current invoice stipulates. You can locate credit balances on the right side of a subsidiary ledger account or a general ledger account.
Where is the credit balance on the ledger?
In accounting, a credit balance is the ending amount found on the right side of a general ledger account or subsidiary ledger account.
When do I get a credit on my credit card?
A credit might be added when you return something you bought with your credit card. Credits can also be added to your account because of rewards you have earned or because of a mistake in a prior bill. If the total of your credits exceeds the amount you owe, your statement shows a credit balance.
