"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:
“The mystical nature of American consumption accounts for its joylessness. We spend a great deal of time in stores, but if we don’t seem to take much pleasure in our buying, it’s because we’re engaged in the acts of sacrifice and self-definition. Abashed in the presence of expensive merchandise, we recognize ourselves ... as supplicants admitted to a shrine.”
—Lewis H. Lapham (b. 1935)
“Simplicity, simplicity, simplicity! I say, let your affairs be as two or three, and not a hundred or a thousand; instead of a million count half a dozen, and keep your accounts on your thumb-nail.”
—Henry David Thoreau (1817–1862)