T-account

The accounts in a firm’s ledger are physically represented by t-accounts, so named because of their “T” formation. The “T” creates two sides for each account, a debit (left) side and a credit (right) side. Amounts are entered into the t-accounts by posting, a phase in the accounting cycle when journal entries are transferred to the ledger accounts. Alone, debit and credit mean nothing more than left and right, respectively. When associated with ASSETS and expense accounts, a debit increases these accounts; credits decrease them. When associated with liabilities, equities, and revenues, a credit increases these accounts; debits decrease them.
See also DEBIT, CREDIT.