Tuesday, July 1, 2008

How To Record Accounting Transaction

Follow these Five Steps to Record an Accounting Transaction:

  1. Determine if the event is of financial importance to the business
  2. State the Monetary Value of the Event
  3. Locate which accounts the transaction affects.
  4. Determine whether the transaction increases or decreases the balances in those accounts
  5. Record the transaction in the the financial accounting ledger.

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