[MacroUniversity]

T-Account is a device or convention for organizing and accumulating the accounting entries of transactions that affect an individual account, such as cash, accounts payable or retained earnings.

Ex:
CASH
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Recording a transaction depends on on whether the transaction is an asset, a liability or shareholder's equity:

• Increases in assets appear on the left side, decreases in assets appear on the right side
• Increases in liabilities appear on the right side, decreases in liabilities appear on the left side
• Increases in shareholder's equity appear on the right side, decreases in shareholder's equity appear on the left side

T-accounts

• Record the effects of transactions on individual balance sheet accounts
• Sum the effects of all transactions affecting a particular account during a period, obtain an ending balance in that account and then prepare a balance sheet