Sure! To create a T-account, we need to understand that a T-account is used in accounting to represent the dual effect of transactions on accounts. T-accounts are typically used to illustrate how transactions impact assets, liabilities, and equity.
In Jeanne's case, she is transferring $100 from KCB (which we will assume is her former bank account) to BK (the new bank account she has just opened).
T-Accounts
For KCB Account (the old bank account)
| KCB (Asset) | |--------------------| | Debit | Credit | |--------------------| | | 100 | |--------------------|
For BK Account (the new bank account)
| BK (Asset) | |--------------------| | Debit | Credit | |--------------------| | 100 | | |--------------------|
Explanation
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KCB Account: The credit of $100 indicates that this amount has been withdrawn from KCB. Since money is leaving this account, it decreases its balance.
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BK Account: The debit of $100 shows that this amount has been added to BK. Since money is being deposited into this account, it increases its balance.
This illustrates the accounting entries for the transfer Jeanne made from KCB to BK.