Answer
An account consists of three parts
- a title
- a left or debit side, and
- a right or credit side
Because the format of an account resembles the letter T, we refer to it as a T-account. T-account also called ledger account
| Title of Account | |
| Left or debit side | Right or credit side |
The standard T-account structure starts with the title of the account which usually forms the top of the T. The term debit indicates the left side of an account, and credit indicates the right side. They are commonly abbreviated as Dr. for Debit and Cr. for Credit. These terms repeatedly in the recording process to describe where entries are made in accounts