Where to Record Business Transaction

1. Accounts 
2. Double-Entry Accounting
3. Journal
4. Ledger
5. Trial Balance

In recording business transaction:

1. Analyze what account are involve.
2. Classify the account involve. (Accounting Equation)
3. Are the account increase or decrease
4. Record the transaction

To test your understanding of the recording procedure, describe the nature of the transactions that have taken place. (see the accounting equation)

Example:

Januanry 1, 2013, Shegarlynn's invest $50,000 cash in the business.

Note: The account involve are investment of Shehgarlynn $50,000, which is cash.

Accounting Equation
Assets = Liabilities + Owner's Equity

Assets = Cash  (Increase)
Owner's Equity = Shehgarlynn, Capital (Increase)

The Journal Entry of the above example:

Date    Description                        Debit                Credit
2013
Jan. 1  Cash ................................$50,000
             Shehgarlynn, Capital...............................$50,000
               To record the original investment of Shehla.                      

Note: Remember always record the date first, the description, debit part, and credit part of the entry.