‘T’ Account Diagram
Posted by Steven in Credits, Debits, expense transaction affects, T accounts diagram
Credits & debits come in to play in double entry or dual entry accounting, a method by which each transactions affects that particular account.Credits & debits come in to play in double entry or dual entry accounting, a method by which each transactions is 
entered twice, once as credit and once as debit. The most common structure of financial documents based on the need to distinguish between debits and credits, is T account diagram. Credits always appear on the right hand side of the T accounts. They represent an increase in items such as business liability, owner’s equity, and revenue accounts, or a decrease in assets. Whereas debits are always listed on the left hand side of the T accounts. They represent an increase in asset and expense accounts or a decrease in liabilities.In the accounting process , a figure is recorded as a debit or as a credit depending on how the
entered twice, once as credit and once as debit. The most common structure of financial documents based on the need to distinguish between debits and credits, is T account diagram. Credits always appear on the right hand side of the T accounts. They represent an increase in items such as business liability, owner’s equity, and revenue accounts, or a decrease in assets. Whereas debits are always listed on the left hand side of the T accounts. They represent an increase in asset and expense accounts or a decrease in liabilities.In the accounting process , a figure is recorded as a debit or as a credit depending on how the 
