[Anonymous]

Dear Abby,

This may be a “dumb” question because I think I have already answered it, but when things get a little more complex, it’s easy to lose focus, so I’m trying to take things just a bit further… What I want is for people to critique, correct or validate my thinking here…

The topic is Gains and Losses. My moment of doubt was – I need to know the normal balance of one or the other, so, uhhh,,, what kind of accounts are they?

Here I went to the fridge – took out an uncooked trout for dinner, and hit myself in the face with it to try and wake up… Then I came back…

I’m like – “Dude, G/L’s appear on the I/S, so they would have to be Revs or Expenses… Maybe it gets a bit confusing because a loss doesnt seem like revenue, but… “

I had actually brought the fish back to my study place, and had to hit myself with it a few more times here… It still wasnt cooked…

So – stinking pretty bad – I argue in desperation… G/L’s have to be revenue accounts, so their normal balance is a credit… Therefore, a Gain would be an increase to a revenue account, so you would credit it; and a Loss would be a decrease to a revenue account, so you would debit it…

I think that’s right, but can someone please confirm my thinking here… I’m not cleaning up until I figure this out…

Sincerely,

Smelling Fishy In DC