Chapter 9, Problem 20AP

To determine

The changes that will happen to the reserves of the First National Bank if there is a scenario such that a man withdraws an amount of thousand dollars as cash and another man makes a deposit of an amount of five hundred dollars as cash.

Concept Introduction:

A group of money related records that make use of double-entry bookkeeping is defined informally as T-account. This is because a big T is being drawn on the page with the account title at the top of the T. The debits would be organized under the sleeping line of T and to the left side of the standing line, whereas the credits would be under the sleeping line but to the right side of the T.

Thus, the debits and credits would be clearly separated by the standing line of the T. T-accounts are also be referred as ledger accounts.