What are the two sides of a T Account used to represent?

The two sides of a T Account are used to represent debits and credits. In accounting, a T Account is a visual tool that helps to track the increases and decreases in an account. The left side of the T Account is designated for debits, while the right side is for credits. This structure allows accountants to see the impact of transactions on accounts clearly and helps ensure that the accounting equation (assets = liabilities + equity) remains balanced. Each financial transaction involves a debit entry in one account and a corresponding credit entry in another, making the T Account essential for maintaining accurate records in the double-entry accounting system. This understanding of debits and credits is foundational to navigating financial statements and accounting practices.