1. LESSON 2-1 Using T Accounts
5/22/2018
LESSON 2-1
Using T Accounts
Define and ID accounting terms related to analyzing transactions into debit and credit parts

2. The accounting equations can be represented as a “T”
The “T” Account
The accounting equations can be represented as a “T”
LESSON 2-1

3. The “T” Account
A record summarizing all the information pertaining to a single item in the accounting equation is known as an account
An accounting device used to analyze transactions is called a “T” Account
LESSON 2-1

4. The “T” Account The amount recorded on the left side is called a debit
The amount recorded on the right side is called a credit
Dr. Is the abbreviation for debit
From latin word debere
Cr. Is the abbreviation for credit
From latin word credere
LESSON 2-1

5. ACCOUNTS
page 29
LESSON 2-1

6. The “Normal” Balance
The side of the account that is increased is called the normal balance
Assets are on the left side of the accounting equation and have normal debit balances
Liabilities are on the right side of the accounting equation and have normal credit balances
Owners equity is on the right side of the accounting equation and has a normal credit balance
LESSON 2-1

7. ACCOUNT BALANCES
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LESSON 2-1

8. Increases and Decreases
The sides of a T account are used to show increases and decreases in account balances
Two basic accounting rules that regulate increases and decreases in account balances
1. Account balances increase on the normal balance side of an account
2. Account balances decrease on the side opposite the normal balance side of an account
LESSON 2-1

9. INCREASES AND DECREASES IN ACCOUNTS
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LESSON 2-1

10. TERMS REVIEW
page 31
T account
debit
credit
normal balance
LESSON 2-1