"T" Accounts
The process of using debits and credits creates a ledger format that resembles the letter "T". The term "T-account" is accounting jargon for a "ledger account" and is often used when discussing bookkeeping. The reason that a ledger account is often referred to as a "T" account is due to the way the account is physically drawn on paper (representing a "T"). The left side (column) of the "T" for Debit (dr) transactions and the right side (column) of the "T" for Credit (cr) transactions.
| Debits (dr) | Credits (cr) |
|---|---|
Read more about this topic: Debits And Credits
Famous quotes containing the word accounts:
“Every gazette brings accounts of the untutored freaks of the wind,—shipwrecks and hurricanes which the mariner and planter accept as special or general providences; but they touch our consciences, they remind us of our sins. Another deluge would disgrace mankind.”
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—Chinese proverb.