This lecture will address accounting topics such T-accounts.

Many terms are familiar to accountants that provide the foundation of more info accounting system. These terms are: T-account (debit/credit), double entry accounting (debit/credit) and T-account. These terms are common to accounting students around the world. These terms can be used by any business person, whether they are an investment banker or a small-business proprietor. They are easy-to-understand and will be useful in most business situations. Let’s take a closer glance.

T-Account

Accounts include accounting records that document transactions and other events. An account is a record that records any individual increase or decrease in any asset, liability, or owner’s equity. Accounts can contain numbers that are related to a particular item, or class. You can think of the following accounts: Cash, Fixed Assets (fixed asset), Cash and Accounts Receivables.

An account is made up three parts.

– The account’s title

– Left side (known via debit).

– Right side (known under credit).

Because of the way the parts are arranged, this account is called a “T account”. It could also be used to keep accounting records. Today, accountants can now use accounting software to draw T accounts.

Account Balance, Credit, and Debit

Credit refers the right and debit to the left. These terms are abbreviated Cr for credit or Dr for debit. Both credit and debit will be recorded as account numbers.

An account balance is the total of your credit and debit amounts. Your account balance can be increased or decreased by debit. You can find a complete list below of accounts, and the meaning of debits to them.