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A T-account is the basic tool used in accounting to keep record of the transactions that takes place. This is a tool which gets its name from its ‘T’ shape: the left side of the ‘T’ for debits, the right side for credits. It is necessary to understand that T-account reflects certain account, for instance, cash account, accounts payable or sales account. In journal entries, accountants employ T-accounts so that they arrange journal entries properly and to maintain the equation of accounting. This tool works effectively to clarify this double-entry system so that one is able to detect errors or analyse financial information.
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