T Accounts - The Book-keepers Forum (UK)

Noola · Senior Member

T Accounts

semsley · Guru

They were used in "proper" manual book-keeping (ie before computers, before excel),

I still use them on a sheet of paper if I am working out a particularly troublesome transaction.

HendyPhilhendy · Guru

I always use them for training. It is the easiest way to explain double entry and the basic transaction principles.

There is a noticeable trend, and it is quite surprising, that many new bookkeepers are not understanding what these are.

Shamus · Forum Moderator & Expert

I agree with Phil and Sheila.

Personally I still use them when working out what goes where in Cashflow statements but thats about it.

Computing pretty much made them redundant however when one is first starting out they are still good to give a good understanding of the principles of double entry.

I think that the ICB have the right idea on this one in making people do the level I manual first so new bookkeepers have to get the general principles before they go down the computing route.

ADAS · Guru

semsley wrote:
I still use them on a sheet of paper if I am working out a particularly troublesome transaction.

You still can't beat them for this.

The auditor for one of my clients, he's in his 70's, still gives me a manual extended TB and in his post year end adjustments writes a narrative "being......" underneath the double entry.

It's great to see.

ADAS · Guru

Shamus wrote:
I think that the ICB have the right idea on this one in making people do the level I manual first so new bookkeepers have to get the general principles before they go down the computing route.

Couldn't agree more.

AngelaWBS · Senior Member

ADAS wrote:

semsley wrote:
I still use them on a sheet of paper if I am working out a particularly troublesome transaction.

You still can't beat them for this.
The auditor for one of my clients, he's in his 70's, still gives me a manual extended TB and in his post year end adjustments writes a narrative "being......" underneath the double entry.
It's great to see.

Many moons ago, before I studied bookkeeping, I was taught to write "being..." for journal naratives. Like Semsley I still use T accounts for following through a troublesome transaction.

MarkS · Expert

Although our office is fully computerised i still use "being" to start the narrative of my journals which i continue to handwrite.

MarkS

Amanda · Expert

HI,

I still refer back to them now and then, its easier to write out the journal first and see it on paper then to guess it on the computer. Also I recently had to train someone on QB and went back to the T accounts to explain. I was taught the old fashioned way and you never forget it.

semsley · Guru

Gosh and I thought it was only me who wrote out journals on paper before putting them on the computer, for some inexplicable reason I just can't do them direct to a computer program.

Rhianrach · Expert

semsley wrote:

Gosh and I thought it was only me who wrote out journals on paper before putting them on the computer, for some inexplicable reason I just can't do them direct to a computer program.

I write them out and make sure everything works out first, It's always good to have a paper copy of what you have done to refer to. :)

ADAS · Guru

I still buy A4 analysis pads as well

Wella · Expert

I bought a load of double entry ledgers, journals and cash books from a company that has a brand called Rhino. They were the only ones I've seen around.

They're great (and cheap biggrin

) for exam excercises (already pre ruled) and for maintaining a manual system.

http://www.victorstationery.com/Products/tabid/74/CategoryID/25/SearchID/4/SearchValue/Ledger/Default.aspx

Bill

attilabenko · Guru

WH Smith and Ryman's sells them ;)
If I could charge to my clients for my time spent on manual bookkeeping I would not touch computers, they are just boring sometimes.

karenb · Veteran Member

This is like music to my ears - I LOVE T Accounts - I am so glad I am not the only one that still checks certain transactions the good old book-keeping way and still uses Analysis Pads, where would we be without them:)

Karen

gbm · Guru

Another yes - T accounts are a fantastic way of following the dr's and cr's. Also start all my journals 'being...'

Semsley, it is good practice to write them out first, it gives you a more thorough trail, and makes you think about it rather than blindly doing it.

In a similar way, when we do a set of accounts for a sole trader/partnership, we always do the tax calculation in excel - it may add more time to the job, but it has saved a number of small but significant errors making their way to the tax return.

chatcat · Senior Member

Being self-taught I was only dimly aware that T-accounts were falling out of use. If so, that's a pity, because there's something about having the debits over THERE and the credits over THERE that makes it much clearer than in a three column layout.

Also, I need paper and pen to understand properly!

I love the look of old ledgers in copperplate handwriting, with the diagonal marks to stop anyone trying to sneak in new entries.

Alan3 · Member

Hi Semsley
i always get in a pickle when doing t accounts. hope you can help

we regards to prepayments

if i receive an invoice which relates to the whole year Jan- Dec . what are the Dr and Cr entries for Jan, Feb and March?

Do I,
Jan
Dr prepayments
Cr purchase ledger control account

Feb
Dr Prepayments
Cr ??

March
Dr ?
Cr ?

semsley · Guru

we regards to prepayments

if i receive an invoice which relates to the whole year Jan- Dec . what are the Dr and Cr entries for Jan, Feb and March?

Do I,
Jan
Dr prepayments
Cr purchase ledger control account

Feb
Dr Prepayments
Cr ??

March
Dr ?
Cr ?

Debit prepayments, credit expense account at the end of each period for which you are accounting. Then reverse the entry at the beginning of the next period.

Alan3 · Member

so at the begining of Feb
do i Cr prepayments
and Debit ecpenses?

semsley · Guru

That's about it

Alan3 · Member

Many thanks:)