Unit 3 Recording Transactions in T- Accounts

From Unit 2: CashAcct Rec Equipment Building Acct PayBank Loan Capital

From Unit 2: Information from balance sheet- CashAcct Rec Equipment Building Acct PayBank Loan Capital

There must be at least two entries (dual entry accounting) to keep the balance sheet balanced. CashAcct Rec Equipment Building Acct PayBank Loan Capital Sept

Asset and Liability transaction: CashAcct Rec Equipment Building Acct PayBank Loan Capital Sept Sept

What was this transaction? CashAcct Rec Equipment Building Acct PayBank Loan Capital Sept Sept Sept

Unit 3: T-Accounts To more easily reflect the changes that transactions create, we will learn the concept of T- Accounts. Essentially each item in the balance sheet becomes its own separate account. We describe each side of the “T” as a Debit or a Credit.

T-Accounts may look something like this: Note: Assets balances all always Debits and grow on Debit side Liabilities and Capital always Credits and grow on Debit side!

Cash $500 Sept 20 $300 $800$200Sept 24 Balance $600 T- Account Transactions: Acct Rec $400 $300Sept20 Balance $100 Bank Loan $5000 Sept 24 $200 Balance $4800