T-account
What is a T-account?
A T-account is an account drawn in the shape of a letter T.
The name of the account goes across the top. Debits go on the left side and credits go on the right side.
The balance is the difference between the two sides.
Example
A Bank account has £1,200.00 on the debit side and £850.00 on the credit side. The debit side is bigger, so the account has a debit balance of £350.00.
Why it matters
Every account has two sides. Drawing them makes it plain which side an entry goes on, and which side is bigger when the account is balanced.
Practise it
Practise it nowDebit and credit
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].