"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:
“No common-place is ever effectually got rid of, except by essentially emptying one’s self of it into a book; for once trapped in a book, then the book can be put into the fire, and all will be well. But they are not always put into the fire; and this accounts for the vast majority of miserable books over those of positive merit.”
—Herman Melville (1819–1891)
“We must love one another, yes, yes, that’s all true enough, but nothing says we have to like each other. It may be the very recognition of all men as our brothers that accounts for the sibling rivalry, and even enmity, we have toward so many of them.”
—Peter De Vries (b. 1910)