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Financial Records Double-Entry Bookkeeping

A T-account is a method for recording double-entry bookkeeping entries that involves drawing a large T and listing the account title above the horizontal line, with debits recorded on the left side and credits on the right side below the vertical line, to keep track of increases and decreases in the account balance. It is also known as a ledger account and provides an example of recording dates, amounts, and computing the ending balance for a cash account.

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Allen Carl
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46 views1 page

Financial Records Double-Entry Bookkeeping

A T-account is a method for recording double-entry bookkeeping entries that involves drawing a large T and listing the account title above the horizontal line, with debits recorded on the left side and credits on the right side below the vertical line, to keep track of increases and decreases in the account balance. It is also known as a ledger account and provides an example of recording dates, amounts, and computing the ending balance for a cash account.

Uploaded by

Allen Carl
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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What is a T-Account?

A T-account is an informal term for a set of financial records that


uses double-entry bookkeeping. The term describes the appearance of the
bookkeeping entries. First, a large letter T is drawn on a page. The title of
the account is then entered just above the top horizontal line, while
underneath debits are listed on the left and credits are recorded on the
right, separated by the vertical line of the letter T.

A T-account is also called a ledger account.

Example:

Cash
12/01 P100,000 12/14 P50,000
   
   
   
   
Bal. P50,000  

1. Write the date first before the amount on the debit and the credit.
2. Record all entries on the debit and the credit.
3. Compute for the balance.

Each account title should have each corresponding T-account.

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