Using T-Accounts Show What Happens to Reserves at New National

question 59

Essay

Using T-accounts show what happens to reserves at New National Bank if one individual deposits $1000 in cash into her chequing account and another individual withdraws $750 in cash from her chequing account.

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Definitions:

Accounting Process

The systematic approach to recording, classifying, summarizing, and reporting a business's financial transactions.

Journal Entry

A record in accounting that notes the details of a financial transaction, showing which accounts are affected and by what amounts.

Ledger

A book or database in which financial transactions are recorded systematically.

Source Documents

Original records that provide evidence that a transaction has occurred, such as receipts, invoices, checks, or bank statements.