A T-account shows total debits of $25,000 and total credits of $22,000; therefore, it has a $3,000 credit balance.

Name: A T-account shows total debits of $25,000 and total credits of $22,000; therefore, it has a $3,000 credit balance.
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According to the accounting equation, total debits must equal total credits. If there are total debits of $25,000 and total credits of $22,000, then the T-account is not balanced and there is no credit balance.

A T-Account Shows Total Debits of $25,000 and Total Credits