- 1). Record the debit transaction on the left side of the T-account. For asset and expense T-accounts, record increases in assets or expenses on the debit side of the account. For liability and revenue T-accounts, record decreases in liabilities or revenues on the debit side of the T-account.
- 2). Record the offsetting credit transaction on the right side of the T-account. For asset and expense T-accounts, record the offsetting decrease in assets or expenses on the credit side of the T-account. For liability and revenue T-accounts, record the offsetting increase in liabilities or revenue on the credit of the T-account.
- 3). Record the normal balance entry on the appropriate side of the T-account. The normal balance entry is the entry that will balance the T-account, and it is calculated by subtracting decreases from increases. For example, if an asset T-account has a debit increase of $1,500 and a credit decrease of $500, the normal balance equals $1,500 - $500 = $1,000, and it will be entered on the debit (left) side of the account. In this example, the normal balance will be entered in the general ledger as an increase to owner's equity, which fully offsets the increase in assets.
EDITOR PICKS & Articles
- Tips To Help Shed The Pounds Off!
- Mp4Acquista Uno Oggi
- Cuchi-Cuchi Marketing
- Tuscan Organisation With Dedicated Marketing Methodologies
- Make Your Christmas Purchases Online - And Get Money Back!
- A Shopping Guide- Native American Jewelers
- A Look at the Different Generations of Night Vision Scopes
- What to Look For When Hiring SEO Services
- Proven Tips For Being Successful With Network Marketing
- Printing Flyers and Brochures for Your Business
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
"Business & Finance" Categories
Stay With Us