T-account
T-account is a simple visual diagram for tracking all entries in a single ledger account. Debits sit on the left, credits on the right. The balance equals the larger side minus the smaller.
Also known asledger account
FrameworkDouble-entry bookkeeping
See it move
A T-account is shown as two facing columns: the debit side (left) records an opening balance of €4,000 and a cash receipt of €3,000, while the credit side (right) records a payment of €2,000. The net debit balance is €7,000 minus €2,000, which equals €5,000 — the debit side is the normal balance for asset accounts. This layout makes it straightforward to see how each transaction shifts the account balance.
Check yourself
A business's Cash T-account shows debit entries totalling €8,200 and credit entries totalling €3,500. What is the balance, and on which side does it sit?