T-accounts
Objective: Post entries to T-accounts and compute their balances.
Recommended first: Double-entry bookkeeping
A T-account is a sketch of one account: debits on the left, credits on the right. To find the balance, total each side and subtract the smaller from the larger. The balance sits on the larger side.
T-accounts are a thinking tool. Real systems use a general ledger with dates, references, and running balances, but the logic is identical.
T-accounts are especially useful when working through a group of transactions on paper or in an interview. Draw one T for each account affected, post every line, and total both sides. The balance should be on the normal side for most accounts; if not, recheck your postings. Opening balances go on the normal side at the top.
Check your work
- Is the opening balance on the normal side?
- Are all debits on the left and credits on the right?
- Is the closing balance the difference between the two totals?
Opening debit $2,000; receipts $500 and $300; payments $400. Closing balance = $2,800 − $400 = $2,400 debit.
| Account | Debit | Credit |
|---|---|---|
| Cash (closing balance) | $2,400.00 |
Common mistakes
✗ Adding credits to a debit-balance account.
✓ Credits decrease an asset account.
Guided practice
Use hints freely here.
Item 1 of 1
Find the Cash T-account balance
The Cash T-account opens with a debit balance of $1,900.00. During the week it receives debits of $300.00 and $850.00 and credits of $280.00, $350.00, and $80.00. What is the closing balance?
Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 4
Service Revenue ledger
Service Revenue receives credits of $1,140.00, $1,120.00, $500.00 this month and one debit of $75.00 correcting an overbilled invoice. What is the account's credit balance at month-end?
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Key terms
References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.