T-Account Examples

Updated on January 3, 2024
Article byWallstreetmojo Team
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

Examples of T-Account

The following T-account examples provide an outline of the most common T-accounts. It is impossible to provide a complete set of examples that address every variation in every situation since there are hundreds of such T-accounts. The visual presentation of journal entries, which are recorded in the general ledger account, is known as the T-Account T-AccountT Account is a visual presentation of accounting journal entries that are recorded by the company in its general ledger account in a way that it resembles to shape of alphabet ‘T’. It depicts graphically credit balances on right side of the account and debit balances on the left side of the account.read more. It is called the T-account because bookkeeping entries are shown in a way that resembles the shape of the alphabet T. It depicts credits graphically on the right side and debits on the left side. Each example of the T-account states the topic, the relevant reasons, and additional comments as needed.

Example #1

Mr. X took a shop on rent on which he is doing the business from Mr. Y. At the end of March -2019, Mr. X received an invoice of $ 50,000 from the landlord Mr. Y for the rent of the March month on March 31st, 2019. After a few days of receiving the invoice for the rent, i.e., on April 7th, 2019, Mr. X makes the same payment. Record the transactions in the T- account.

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This transaction shows expenses incurred by the company and the creation of liability to pay off that expense. In this case, three accounts will be affected: the rent expense account Accounts payable accountAccounts Payable AccountAccounts payable is the amount due by a business to its suppliers or vendors for the purchase of products or services. It is categorized as current liabilities on the balance sheet and must be satisfied within an accounting period.read more, and cash account. In the initial transaction, when the company gets the invoice for the rent payment, there will be a debit of $ 50,000 to the rent expense accountExpense AccountExpense accounting is the accounting of business costs incurred to generate revenue. Accounting is done against the vouchers created at the time the expenses are incurred.read more and the corresponding credit will be to the accounts payable account.

After a few days, when the payment is made, the accounts payable liability will be eliminated by debiting that account with the corresponding credit to the cash account, leading to a decrease in the cash balance.

T–accounts will be as follows:

Rent Expense Account

rent expense

Accounts Payable Account

Accounts Payable

Cash Account

Cash Account

Example #2

Mr. Y started the business. On April 19, he identified the following transactions. After reviewing the transactions, prepare the necessary journal entries and post them to the necessary T- Accounts.


For the transactions during the month of April-2019, firstly, the journal entries are posted and based on which the T- Accounts are prepared as follows:

T Account Examples 2

Journal Entry

T Account Journal Entry Examples 2

Capital Account

capital account

Bank Account

bank account

Prepaid Rent Account

Prepaid Rent Account

Computer Equipment Account

Computer Equipment Account

Furniture Account

Furniture Account (Account Examples)

Office Expense Account

Office Expense Account (Account Examples)

Salary Account

Salary Account T (Account Examples)

Rent Account

Rent Account (T Account Examples)


T-account is very helpful to the user as it provides the guideline to the accountants regarding what is to be entered in the ledger for an adjusting balance of the accounts so that the amount of the revenue equals the amount of the expense. Thus, the T-account is used for the set of financial records that useDouble Entry Accounting System is an accounting approach which states that each & every business transaction is recorded in at least 2 accounts, i.e., a Debit & a Credit. Furthermore, the number of transactions entered as the debits must be equivalent to that of the credits. read more double-entry bookkeepingDouble-entry BookkeepingDouble Entry Accounting System is an accounting approach which states that each & every business transaction is recorded in at least 2 accounts, i.e., a Debit & a Credit. Furthermore, the number of transactions entered as the debits must be equivalent to that of the credits. read more. The accounts have the letter T format and are thus referred to as the T accounts. In the T- Accounts, the debit side always lies on the left side of the T outline, and the credit side always lies on the right side of the T outline.

Recommended Articles

This has been a guide to T-account Examples. Here we discuss top examples, including rent expense, accounts payable, salary expense, office expense, etc., along with journal entries. You can learn more about financing from the following articles –

Reader Interactions


  1. Maalitome Francis says

    I really appreciate your work. Thank you for the explanation of the following transactions. I now understand the general ledger and journal entries

  2. Tame Dave says

    It was nice

  3. Jacqueline Chimutashu says

    Thank you very much. This is very easy to follow and understand.

  4. osman says

    thanks a lot for providing this lessons i got more information.

    • Dheeraj Vaidya says

      Thanks for your kind words!

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