The normal balance of capital account is A. Credit balance B. Debit balance C. Cash balance D. Neither debit nor credit balance

The correct answer is A. Credit balance.

A capital account is a financial statement that shows the owner’s equity in a business. The normal balance of a capital account is a credit balance. This means that the account will have a credit balance unless there is a specific reason for it to have a debit balance.

There are a few reasons why a capital account might have a debit balance. For example, if the owner of a business withdraws money from the business, this will decrease the owner’s equity and cause the capital account to have a debit balance. Additionally, if the business incurs a loss, this will also decrease the owner’s equity and cause the capital account to have a debit balance.

However, the normal balance of a capital account is a credit balance. This means that the account will have a credit balance unless there is a specific reason for it to have a debit balance.

Option B is incorrect because the normal balance of a capital account is a credit balance, not a debit balance.

Option C is incorrect because a cash balance is a different type of account. A cash balance is an asset account, while a capital account is an equity account.

Option D is incorrect because a capital account can have a credit balance.