T Account Debit Credit
In T-Account Format of Ledger , there is Debit And Credit Side . One Account is debited and other is credited. For Example, On 1 st August, 2018, Mr. A invested Cash Rs. 20000 into the business, then it is a Accounting / Business Transaction . There are two accounts involved in it. One is Cash account and other one is Capital account. According to Rules of Debit and Credit , when Cash increases, we debit it and when it decreases, we credit it. For Capital account, when it increases we credit it and when it decreases i.e. When Owner’s Withdraws Cash From Business For Personal Use , then it decreases. Following Accounting Journal Entry is passed in the Journal , which is then transferred to T-Accounts of Cash Book and Capital and Drawings Accounts as shown below: Ca...