Acc 107 Chapter 3

• - Shaped like a T
• - Debit means Left
• - Credit means Right
• - Account Name on Top

- Every T account has an increase side and a decrease side.

- Some accounts increase on the debit side and some accounts increase on the credit side.

1. Foot the Debit and Credit Sides


2. Find the difference between the debit and credit totals.

3. Write Balance on side with larger total

Example:

• $3,500 debit footing
• - $3,130 credit footing
• ---------------------------
• $370 balance

To "Foot" means to Total

Asset Accounts

• + Increase on the debit
• - Decrease on the credit side

In every transaction, debits must equal credits.

Liability Accounts

• - Decrease on the debit side
• +Increase on the credit side

Capital Account

• - Decrease on the debit side
• + Increase on the credit side

Drawing Account

• + Increase on the debit Side
• - Decrease on the credit side

[Just Like Asset Acount]

Revenue Accounts

• - Decrease on the debit side
• + Increase on the credit side

[Just Like Liability & Capital Accounts]

Expense Accounts

• +Increase on the debit side
• - Decrease on the credit side

[Just Like Asset Account]

• - A listing of all accounts and their balances
• - A totaling of debits and credits
• - Is proof that debits equal credits and that the accounting equation has remained in balance.
• -Used as an aid in preparing financial statements.

• 1. Name of the company
• 2. Title of the document - " Trial Balance"
• 3. Date of the trial balance

• All asset accounts are first
• Liabilites are shown next
• Now the owner's equity accounts
• Then the revenue account
• Finally, the expense account

Debits=Credits