Question
Asked Jun 30, 2019
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Describe the relationship between debit balances and credit balances when it comes to “t graphs”?

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Expert Answer

Step 1

T-graph or T-accounts:

 

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.

Step 2

Relationship between debit balances and credit balances of T-graph:

  • Increase in asset is recorded on the debit side of the T-account, while decrease in asset is recorded on the credit side of the T-account.
  • Increase in expense is recorded on the debit side of the T-account, while decrease in expense is recorded on the credit side of the T-account.
  • Increase in owners’ drawing is recorded on the debit side of the T-account, while decrease in owners’ drawing is recorded on the credit side of the T-account.
  • Decrease in...

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