A t account is an account that displays in T form used in accounting to organize records of financial transactions. It is known by the name T-account because its structure resembles the capital letter T; the top line contains the title of an account, left side is meant for debits and the right side is to indicate the credits. In regard to its importance, T-accounts complement the entries, provide the best means through which the concept of double-entry system can be understood, and they are very useful when one wants to know the effect of a particular transaction on one or more accounts. The liabilities and equities in a T-account are well defined making it easier to balance accounts and check for mistakes on the account.
