All accounts in ledger book are in an accounting equation that categorize them into credit or debit behavior in double-entry, so process of using debits and credits creates a ledger format that resembles the letter ‘T’. The term T accounts is commonly used when discussing bookkeeping and journal entry. T accounts showing debits on the left and credits on the right.

T-accounts format of ledger book

t-accounts in ledger book

‘T’ Accounts

Next Pages:

Introduction of Terms Credit and Debit
Principles