T-Accounts, Accrual Entries (2.4)

T-Account Purpose

Used for planning and organizing debits and credits within individual accounts rather than posting official ledger records.

T-Account Layout

Account name at the top; debits are always on the left side, and credits are always on the right side.

Where Totals/Balances Go in a T-AccountWhere Totals/Balances Go in a T-Account

At the bottom; the net difference is placed on the side where the totals are larger.

T-Account Entry for Sale Made on Account

Debit Accounts Receivable and Credit Revenue.

Debit Accounts Receivable and Credit Revenue.

Debit Cash and Credit Accounts Receivable.

T-Account Entry for Expense Incurred on Account

Debit Rent Expense (or respective expense) and Credit Rent Payable (or respective liability).

T-Account Entry for Cash Paid for Expense on Account

Debit Rent Payable (liability decreases) and Credit Cash (asset decreases).