Definition, Meaning & Synonyms
t-account
Noun
/tiː əˈkaʊnt/
Definition
A T-account is a simple accounting tool that helps visualize the effects of transactions on individual accounts by displaying debit and credit amounts in a T-shaped format.
Examples
- When analyzing the financial transaction, we used a T-account to show the debit and credit movements clearly.
- Each T-account helped us understand the changes in the company’s financial position after each sale.
Meaning
It is commonly used in bookkeeping to analyze how a particular entry impacts both sides of an account—assets and liabilities, for instance.
Synonyms
- Ledger account
- Account balance
