T-Account
Categories: Accounting
Accounting is all about credits and debits. Money comes in, money goes out. The accountant keeps track of where all the cash ends up...and what's left over when all the movement stops.
Imagine splitting a page into two columns. Draw a big straight line down the middle. You've got credits on one side, debits on the other. Now draw a horizontal line across the top and label the account you're talking about ("Ted's Vegas Fund," "Terry's Bank Account," etc.). Guess what? You've got a "T"...a line down the middle separating the credit/debit columns, and a line across the top with the label. A T-account.
The term simply refers to the general outline of an accountant's records when they keep double-entry books.
