T Account represents an individual account of a company by tracking the additions and subtractions, also referred to as debits and credits. It got its name from its visual shape which resembles the letter "T". Debit is always recorded on the left side of a T Account while credit is recorded on the right side. Debits and credits can refer to an increase or a decrease depending on the types of account.
In general, for assets a debit refers to an increase in the account and a credit refers to a decrease. For liabilities and equity, a debit always refers to a decrease while a credit means an increase in the account. According to the double-entry accounting system, every transaction a company makes must be recorded in two or more accounts with balanced debit and credit entries.