What is the relationship between a T-account and a journal entry?

Answer 1

Typically, the accountant records journal entries before transferring the amounts to T-accounts. A T-account is used to record the effects of events and transactions that affect a specific asset, liability, shareholders' equity, revenue, or expense account (which the text has not yet introduced). It captures both increases and decreases in that specific account, without reference to the effects on other accounts. It also shows the beginning and ending balances of balance sheet accounts. A journal entry shows all the accounts affected by a single event or transaction; each debit and each credit in a journal entry will affect a specific T-account. Journal entries provide a record of transactions, and T-accounts summarize the effects of transactions on specific accounts.