Creating T-Accounts High School Accounting Worksheets | Debits and ... - Free Printable

Let's solve each of the transactions by creating T-accounts for the appropriate accounts. A T-account is a visual representation of a general ledger account, with debits on the left and credits on the right.

We will go through each transaction one by one, determine the accounts affected, and record the correct debit and credit entries in T-account format.

---

🔹 Transaction 1: Paid cash for office supplies, $300

- Debit: Office Supplies (Asset) → Increases
- Credit: Cash (Asset) → Decreases

```
Office Supplies
_________
| |
| 300 |
|___________|

Cash
_________
| |
| 300 |
|___________|
```

> ✔ Explanation: We bought supplies (asset), so we increase Office Supplies (debit). We paid in cash, so Cash decreases (credit).

---

🔹 Transaction 2: Purchased a new laptop with the company credit card, $1,500

- Debit: Equipment (Asset) → Increases
- Credit: Accounts Payable (Liability) → Increases (since it's on credit)

```
Equipment
_________
| |
| 1,500 |
|___________|

Accounts Payable
_________
| |
| 1,500 |
|___________|
```

> ✔ Explanation: The laptop is a long-term asset (Equipment). Since it was purchased on credit, we increase liability (Accounts Payable).

---

🔹 Transaction 3: Received $500 cash for services rendered

- Debit: Cash (Asset) → Increases
- Credit: Service Revenue (Revenue) → Increases

```
Cash
_________
| |
| 500 |
|___________|

Service Revenue
_________
| |
| 500 |
|___________|
```

> ✔ Explanation: Cash increases (debit), and revenue increases (credit) when services are performed.

---

🔹 Transaction 4: Paid employees, $3,000

- Debit: Salaries Expense (Expense) → Increases
- Credit: Cash (Asset) → Decreases

```
Salaries Expense
_________
| |
| 3,000 |
|___________|

Cash
_________
| |
| 3,000 |
|___________|
```

> ✔ Explanation: Paying salaries is an expense (debit), and cash is reduced (credit).

---

🔹 Transaction 5: Sold services on account to ABC Corp., $1,000

- Debit: Accounts Receivable (Asset) → Increases
- Credit: Service Revenue (Revenue) → Increases

```
Accounts Receivable
_________
| |
| 1,000 |
|___________|

Service Revenue
_________
| |
| 1,000 |
|___________|
```

> ✔ Explanation: Services were sold on credit, so customer owes us (Accounts Receivable ↑), and revenue ↑.

---

🔹 Transaction 6: Paid $1,500 cash on the credit card

This means paying off part of the credit card balance (which is a liability).

- Debit: Accounts Payable (Liability) → Decreases
- Credit: Cash (Asset) → Decreases

```
Accounts Payable
_________
| |
| 1,500 |
|___________|

Cash
_________
| |
| 1,500 |
|___________|
```

> ✔ Explanation: Paying down a liability reduces both Accounts Payable (debit) and Cash (credit).

---

🔹 Transaction 7: Received a bill for utilities to be paid at the end of the month, $300

This is an accrued expense — you incurred the cost but haven't paid yet.

- Debit: Utilities Expense (Expense) → Increases
- Credit: Accounts Payable (Liability) → Increases

```
Utilities Expense
_________
| |
| 300 |
|___________|

Accounts Payable
_________
| |
| 300 |
|___________|
```

> ✔ Explanation: Expense incurred but not yet paid → accrue liability.

---

🔹 Transaction 8: Sold goods to XYZ Corp. The customer paid $500 cash and put the rest on account, $1,500

Total sale = $2,000
- $500 in cash → Cash increases
- $1,500 on account → Accounts Receivable increases
- Revenue increases by $2,000

So:

- Debit: Cash $500, Accounts Receivable $1,500
- Credit: Sales Revenue $2,000

```
Cash
_________
| |
| 500 |
|___________|

Accounts Receivable
_________
| |
| 1,500 |
|___________|

Sales Revenue
_________
| |
| 2,000 |
|___________|
```

> ✔ Explanation: Partial cash and partial credit sale → both Cash and Accounts Receivable increase; Revenue increases by total amount.

---

## ✔ Final Summary of All T-Accounts

Here’s how all the T-accounts look after all transactions:

🟦 Cash

```
| |
500 | | 300
500 | | 3,000
| | 1,500
|_______|
Net: $1,700 (Dr)
```

> Total Debits: $1,000
> Total Credits: $4,800
> Balance: $3,800 (Cr) → Wait! Let's double-check...

Wait — let's correctly tally all Cash movements:

- In: $500 (from #3), $500 (from #8) → $1,000 total inflow
- Out: $300 (#1), $3,000 (#4), $1,500 (#6) → $4,800 outflow

So:
- Cash ending balance = $1,000 - $4,800 = ($3,800) → Credit balance? That can't happen.

But wait — this implies a negative cash, which is possible if more was spent than received.

But let’s check:

- Start: Assume $0
- +$500 (T3)
- +$500 (T8) → $1,000
- -$300 (T1) → $700
- -$3,000 (T4) → ($2,300)
- -$1,500 (T6) → ($3,800)

Yes, Cash has a $3,800 credit balance — meaning negative cash. But that's okay for illustration.

However, in real accounting, this would signal a problem unless there were other sources.

But since we're only tracking these transactions, we accept it.

---

🟨 Accounts Receivable

- T5: +$1,000
- T8: +$1,500
- Total: $2,500 Dr

```
Accounts Receivable
_________
| |
| 1,000 |
| 1,500 |
|___________|
$2,500 Dr
```

---

🟩 Office Supplies

- T1: +$300
```
Office Supplies
_________
| |
| 300 |
|___________|
$300 Dr
```

---

🟪 Equipment

- T2: +$1,500
```
Equipment
_________
| |
| 1,500 |
|___________|
$1,500 Dr
```

---

🟫 Accounts Payable

- T2: +$1,500 (credit)
- T6: -$1,500 (debit)
- T7: +$300 (credit)

So:
- +$1,500 (T2)
- -$1,500 (T6)
- +$300 (T7)
→ Net: $300 Cr

```
Accounts Payable
_________
| |
| 1,500 |
| 1,500 |
| 300 |
|___________|
$300 Cr
```

---

🟬 Service Revenue

- T3: +$500
- T5: +$1,000
→ Total: $1,500 Cr

```
Service Revenue
_________
| |
| 500 |
| 1,000 |
|___________|
$1,500 Cr
```

---

🟥 Sales Revenue

- T8: +$2,000

```
Sales Revenue
_________
| |
| 2,000 |
|___________|
$2,000 Cr
```

---

🟭 Utilities Expense

- T7: +$300

```
Utilities Expense
_________
| |
| 300 |
|___________|
$300 Dr
```

---

🟮 Salaries Expense

- T4: +$3,000

```
Salaries Expense
_________
| |
| 3,000 |
|___________|
$3,000 Dr
```

---

## ✔ Final Answer: Completed T-Accounts

Below are the filled-in T-accounts as per the worksheet:

---

1. Paid cash for office supplies, $300

```
Office Supplies
_________
| |
| 300 |
|___________|

Cash
_________
| |
| 300 |
|___________|
```

---

2. Purchased a new laptop with the company credit card, $1,500

```
Equipment
_________
| |
| 1,500 |
|___________|

Accounts Payable
_________
| |
| 1,500 |
|___________|
```

---

3. Received $500 cash for services rendered

```
Cash
_________
| |
| 500 |
|___________|

Service Revenue
_________
| |
| 500 |
|___________|
```

---

4. Paid employees, $3,000

```
Salaries Expense
_________
| |
| 3,000 |
|___________|

Cash
_________
| |
| 3,000 |
|___________|
```

---

5. Sold services on account to ABC Corp., $1,000

```
Accounts Receivable
_________
| |
| 1,000 |
|___________|

Service Revenue
_________
| |
| 1,000 |
|___________|
```

---

6. Paid $1,500 cash on the credit card

```
Accounts Payable
_________
| |
| 1,500 |
|___________|

Cash
_________
| |
| 1,500 |
|___________|
```

---

7. Received a bill for utilities to be paid at the end of the month, $300

```
Utilities Expense
_________
| |
| 300 |
|___________|

Accounts Payable
_________
| |
| 300 |
|___________|
```

---

8. Sold goods to XYZ Corp. The customer paid $500 cash and put the rest on account, $1,500

```
Cash
_________
| |
| 500 |
|___________|

Accounts Receivable
_________
| |
| 1,500 |
|___________|

Sales Revenue
_________
| |
| 2,000 |
|___________|
```

---

## ✔ Key Takeaways

- Every transaction affects at least two accounts (double-entry accounting).
- Assets and Expenses increase with debits.
- Liabilities, Equity, and Revenues increase with credits.
- Always ensure debits equal credits in each transaction.

Let me know if you'd like this compiled into a printable worksheet or want to see the journal entries too!