A T-account is an account used to represent a general ledger account. The title of the account is present at the top. The left side of the base of T denotes the debit amount and the right side denotes the credit amount.
The account has the following format.
The parts of a T-account.
Answer to Problem 1Q
T-account has a title, left side or debit side, and right side or credit side.
Explanation of Solution
The T-account is a two-column account that resembles the capital letter T. It is commonly used to represent the double-entry system of bookkeeping in a precise manner and helps summarize the balances in the debit and the credit side of an account.
The three parts of the T-account are as follows.
- 1. A title is given on the top portion that describes the type of financial statement (such as cash balance, input costs, and sales revenues).
- 2. The left hand side column called the debit side.
- 3. The right hand side column called the credit side.
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