Account

An account is the basic information storage unit in accounting. Changes in assets, liabilities and equity items are recorded chronologically in accounts. There are separate accounts for each asset, each liability and each equity item. Accounts have account title and a reference number unique to them. Account title describes the type of asset, liability or equity represented by that account.

T-Account Format

The T-Account is the most common type of accounts and it is easy to begin the study of accounting with T-Account. A T-Account resembles the English letter "T". It has three parts:

The word debit and credit simply mean left and right side respectively.

   
Title of Account
Debit SideCredit Side
  
 
 
 

A more professional format of T-Account will often include:

Title of Account
DateDescriptionDebitDateDescriptionCredit
  
  
  
  
  

Written by Irfanullah Jan