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In accounting, t-account accounting is applied in order to write down and conduct analysis of transactions in individual accounts. A debit or a credit is represented on both the sides of the “T”. For instance, if money is taken in the form of cash, it is debited in the cash account T-account. Where expenditure is incurred, a credit in the cash account is indicated. T-accounts aid in following up on increases and decreases in particular accounts and are very crucial in the preparation of trial balances and financial statements because total debits have to be balanced with total credits.