Business Administration 2257 Lecture 1: T-Account

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: T B A

Document Summary

Bus 2257 lecture 1 the t-account: used for seeing the effect of debit and credit on two (or more) accounts. This is because all financial transactions affect at least two of a company"s accounts: there are 3 basic elements for a t-account: title, left side (debit) and right side (credit) Looks exactly like the letter t hence the name. Credit: to make an entry, put the dollar amount on the appropriate side (debit or credit, whenever cash is received, debit cash, whenever cash is paid out, credit cash, no need for a $ sign. Liabilities: equity (excess of assets over liabilities, revenue, expenses.