We record transactions in the accounting records using journal entries.
Steps to take:
1.Determine the accounts that are impacted
2.Determine whether each account increased or decreased ($ amount debited, $ amount credited)
3.Record other relevant transaction details, such as the date, the counterparty and a brief explanation
Steps to take:
1.Determine which accounts are impacted – exactly what we did in our last examples
2.Determine which accounts increased or decreased
3.Record the relevant details
Details required:
-Date
-Amount of debit
-Amount of credit
-Short description
Unique transaction number