Which Of The Following Statements Is (Are) Correct Regarding A T-Account? (Check All That Apply.)
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The correct statements of this multiple choice question (mcq) are A, B and C, as A T-Account (TA) is a simplified form of a Ledger’s Account to easily calculate the closing balance of a particular account for the current accounting period. In this way, one can easily see the debit and credit side of a t-account and the effects of Business Transactions . The debit side or left side represents that the account (a/c) (for which the t-account is preparing) is debited while credit side or right side shows that the account is credited. When a transaction is occurred, it is posted in TA of a particular account. If the a/c is debited in a transaction, then we debit it with the amount in its TA and write the opposite a/c which is the reason. For example, if goods sold to Mr. A for cash $300, then in Sales t-account, we credit the amount with $300 and write alongwith cash account which is the reason as shown below: ...