In order to record the transaction in accounting, accountant needs a storage point. T – Account serves this purpose very well. T – Account saves all the debit and credit transaction in a chronological order. This helps a lot in later records searching. 

Assets, Liabilities, Equity, Income and Expenses have several T accounts within them such as:


  • Property, Plant & Equipment
  • Computers & Accessories
  • Furniture & Fixture
  • Machinery


  • Accounts Payable
  • Notes Payable
  • Loan Payable
  • Interest Payable


  • Utilities Expenses
  • Payroll Expenses
  • Electricity Expenses

T account resembles the English word T as the format is very similar to the word T. A typical T account has three elements: date, debit side and credit side.

Title of Account

 However, some entities prefer to add a description column into the simple typical T account to make it more valuable.

Title of Account