How do I create T accounts for P3-10 15th edition intermediate accounting Solution In Traditional Account a ledger account is usually opened in T form. on the top of T Ledger account name is written. T form has two side of which left side represents Debit side and right side representing Credit. an example will show clear picture how entries are posted into Ledger Accounts, For example, Purchase Account ............ Debit 20,000 Cash Credit 20,000 and Purchase Return ......Debit 2500 Purchase Credit 2500 Debit Purchase Account Credit This ledger represents, Purchase account is debited by Cash for $20,000 and similarly Purchase account is Credited by Purchase return for $2500. At the end of the accounting period, amount column of both side is totaled. if Debit side total is greated than the credit side total, Account have a debit balance to be carry fordwarded to the next period. In the example Debit total is 20,000 however credit total is 2500 only. so Debit balance to carry forward is 17,500. when Amount is carried forwareded it is said that the ladger has been closed. In next period, Amount brought forwarded (B/F) and showen in the Debit side. A similar treatement is done when Credit total is more than Debit side. .

1. How do I create T accounts for P3-10 15th edition intermediate accounting
Solution
In Traditional Account a ledger account is usually opened in T form. on the top of T Ledger
account name is written.
T form has two side of which left side represents Debit side and right side representing Credit.
an example will show clear picture how entries are posted into Ledger Accounts,
For example, Purchase Account ............ Debit 20,000
Cash Credit 20,000
and Purchase Return ......Debit 2500
Purchase Credit 2500
Debit Purchase Account Credit
This ledger represents, Purchase account is debited by Cash for $20,000 and similarly Purchase
account is Credited by Purchase return for $2500.
At the end of the accounting period, amount column of both side is totaled. if Debit side total is
greated than the credit side total, Account have a debit balance to be carry fordwarded to the next
period. In the example Debit total is 20,000 however credit total is 2500 only. so Debit balance
to carry forward is 17,500. when Amount is carried forwareded it is said that the ladger has been
closed.
In next period, Amount brought forwarded (B/F) and showen in the Debit side.
A similar treatement is done when Credit total is more than Debit side.
Cash Account 20,000 Purchase Return 2,500

2. Balance C/F 17,500
20,000 20,000
Balance B/F 17,500