T-Account

A t-account is one of the simplest ways to present ledger accounts. T-accounts resemble the English letter "T", hence the name. Debits are entered into the left hand side of a t-account whereas credits into the right hand side. Changes in assets, liabilities and equity items are recorded chronologically in accounts. There are separate accounts for each asset, each liability and each equity item. All accounts have account title and a reference number unique to them. Account title describes the type of asset, liability or equity represented by that account.

T-Account Format

As stated above, a t-account resembles the English letter "T". It has three parts:

  • The Title
  • The Debit: on the left side
  • The Credit: on the right side
   
Title of Account
Debit SideCredit Side
  
 
 
 

A more practical format of T-Account will include:

  • Date of the record
  • Description of the transaction
Title of Account
DateDescriptionDebitDateDescriptionCredit
  
  
  
  
  

Written by Irfanullah Jan and last revised on