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

by Irfanullah Jan, ACCA and last modified on

XPLAIND.com is a free educational website; of students, by students, and for students. You are welcome to learn a range of topics from accounting, economics, finance and more. We hope you like the work that has been done, and if you have any suggestions, your feedback is highly valuable. Let's connect!

Copyright © 2010-2024 XPLAIND.com