Identify each account affected and its type
Determine whether each account increased or decreased (credit/debit
Record each transaction in journal including brief explanation, credit indented
Date Account and Explanation
Debit Credit
Debit listed first
Credit indented
Brief explanation
All accounting transactions are recorded through journal entries that show account names, amounts, and whether those accounts are recorded in debit or credit side of accounts.The accounting requires that each transaction be recorded by an entry that has equal debits and credits known as double-entry procedure. This double-entry procedure keeps the accounting equation in balance. For each business transaction recorded, the total dollar amount of debits must equal the total dollar amount of credits. If one account (or accounts) is debited for $100, then another account (or accounts) must be credited for the same amount.
