Your first double-entry bookkeeping entries in T-Ledgers

1. Understand the two sides of an entry

Double-entry bookkeeping records each transaction across at least two accounts. The total debits must equal the total credits. A debit is the left side of an entry; a credit is the right side. Their effect depends on the account.

In this example, a debit increases the Bank asset account, a credit increases Owner’s equity, and a debit records Rent expense. Paying rent credits Bank to reduce its balance. A debit does not always mean an expense, and a credit does not always mean income.

2. Create accounts and check opening balances

Open Account Settings and create three accounts: Bank, Owner’s equity, and Rent expense. You can choose your own account names. If you want categories, create Assets, Equity, and Expenses and assign the accounts using Full Mode.

For this practice example, leave every opening balance at zero. If you are bringing existing books into the app, Batch Add Accounts lets you add accounts with opening balances; the total debit opening balances must equal the total credit opening balances. Do not enter the same amount as both an opening balance and a new transaction.

3. Record the investment and rent payment

Open New Journal Entry. Choose the transaction date, add a memo, and select one account on each side. For the owner’s investment, enter 1000.00 on the debit side for Bank and 1000.00 on the credit side for Owner’s equity, then save.

Create a second entry for the rent payment. Enter 200.00 as a debit to Rent expense and 200.00 as a credit to Bank. Add the date and a memo such as “Current-period rent,” then save.

Enter plain numbers in the amount fields, such as 1000.00, without a currency symbol or thousands separator. The app checks that debit and credit totals match before saving. You can review the saved records in Entry History.

4. Check the ledger and trial balance

In the Subsidiary Ledger, review Bank: a debit of 1,000 less a credit of 200 leaves a debit balance of 800. Then open the Trial Balance, choose a period that includes both entries, and generate the table.

The period’s debit activity and credit activity are each 1,200. Closing debit balances and closing credit balances are each 1,000. These are different totals: activity records movements, while closing balances show the remaining amounts.

5. Link accounts to financial reports

T-Ledgers uses the report items and account links you configure. In the Income Statement, link Rent expense to a rent expense item and include both transaction dates in the period. Amounts are calculated as credit minus debit, so this expense appears as −200; with no revenue in this example, the period’s result is a loss of 200.

For a simple Balance Sheet of this example, link Bank to an asset item and Owner’s equity to an equity capital item. To reflect the example’s loss before closing entries, link Rent expense to a separate “Current-period result” item on the equity side; credit minus debit gives −200. Configure the relevant totals and generate the statement.

Assets 800 = capital 1,000 − loss 200

The owner’s original contribution is still 1,000; total equity after the loss is 800. Report links do not change the journal entries or automatically close expense accounts. Check both the mappings and the selected dates when a report differs from your expected result.

You can also configure a Cash Flow Statement by selecting cash accounts and linking other accounts to report items.

6. Keep an exported copy of your records

The app runs in a browser with JavaScript enabled; there is no software download to install. Your records and workspace settings are saved locally in the browser you use. They do not automatically sync to another browser or device.

Use Export in Entry History, the ledgers, or financial reports to save Excel files. Clearing this site’s browser data or using “Clear All Local Data” in Settings deletes the saved workspace data, so keep exported copies of important records.