To enter a Deposit or Withdrawal

Accounting > Financial Tasks > Deposit/Withdrawal

1. Choose either Deposit (money coming into your bank account) or Withdrawal (money
going out of your bank account).
2. Enter the Post Date.
3. Select the Bank Account for this transaction.
4. If you have set up departments, select an optional Department. For more details,
see Managing Accounting Departments.
5. Enter the Description (example: November Bank Fee).
6. Select the Account that this deposit is coming from (or withdrawal is going to).
7. Enter the dollar amount.
8. To add another account, click “Add Row” and repeat the above two steps.
9. As you add accounts and amounts, the Total Deposit/Withdrawal amount will
automatically update.
10.If you have Accounting Premium, you can attach electronic files and receipts to this
entry by clicking “Attach Files.” See Managing Your Receipts and Documents for
details.
11.Click Save when you are finished. This transaction is now recorded and will appear on
your General Ledger report. From here, you can edit, void, or delete this
deposit/withdrawal.
T account

What is a T-Account?
A T-account is an informal term for a set of financial records that uses double-
entry bookkeeping. The term describes the appearance of the bookkeeping
entries. First, a large letter T is drawn on a page. The title of the account is then
entered just above the top horizontal line, while underneath debits are listed on
the left and credits are recorded on the right, separated by the vertical line of the
letter T.

A T-account is also called a ledger account.

Understanding T-Account
In double-entry bookkeeping, a widespread accounting method, all financial
transactions are considered to affect at least two of a company's accounts. One
account will get a debit entry, while the second will get a credit entry to record
each transaction that occurs.
The credits and debits are recorded in a general ledger, where all account
balances must match. The visual appearance of the ledger journal of individual
accounts resembles a T-shape, hence why a ledger account is also called a T-
account.

A T-account is the graphical representation of a general ledger that records a

business’ transactions. It consists of the following:

 An account title at the top horizontal line of the T

 A debit side on the left
 A credit side on the right

What are debits and credits?

In a nutshell: debits (dr) record all of the money
flowing into an account, while credits (cr) record all of the
money flowing out of an account.

What does that mean?

Most businesses these days use the double-entry method for

their accounting. Under this system, your entire business is
organized into individual accounts. Think of these as
individual buckets full of money representing each aspect of
your company

What is a T Account?

1. Hub
2. Accounting
3. What is a T Account?
A T Account is the visual structure used in double entry
bookkeeping to keep debits and credits separated. For
example, on a T-chart, debits are listed to the left of the
vertical line while credits are listed on the right side of the
vertical line making the company’s general ledger easier to
read.
Here’s What We’ll Cover: Why Do Accountants Use T
Accounts? T Account Example What Are the Problems with T
Accounts? Why Can’t Single Entry Systems Use T
Accounts? NOTE: FreshBooks Support team members are not
certified income tax or accounting professionals and cannot
provide advice in these areas, outside of supporting questions
about FreshBooks. If you need income tax advice please
contact an accountant in your area.

Why Do Accountants Use T Accounts?

Accountants use T accounts in order to make double entry
system bookkeeping easier to manage. A double entry system
is a detailed bookkeeping process where every entry has an
additional corresponding entry to a different account. Consider
the word “double” in “double entry” standing for “debit” and
“credit”. The two totals for each must balance, otherwise
there is an error in the recording. A double entry system is
considered complex and is employed by accountants or CPAs
(Certified Public Accountants). The information they enter
needs to be recorded in an easy to understand way. This is
why a T account structure is used, to clearly mark the
separation between “debits” and “credits”. It would be
considered best practice for an accounting department of any
business (that is not using a single entry method of
accounting) to employ a T account structure in their general
ledger.

T Account Example
Here is an example of a T Account
entry:
 This
asset entry shows that J Corp has sold a product valued at
$10.000. This means the debit account is seeing a $10,000
increase in cash, while the value of its inventory (under
“credits”) has been reduced by that same amount. To fully
understand this diagram, consider that:

 Debits increase asset or expense accounts, while

credits decrease them.
 Debits decrease liability, revenue or equity accounts,
while credits increase them.

They must always balance each other out. T Accounts always

follow the same structure to record entries – with “debits” on
the left, and “credits” on the right.