The Accounting Student

How to record a financial transaction

Today I will show you how to record financial transactions into their ledger accounts in 4 easy steps.

STEP 1

• Identify the two items that are affected

STEP 2

• Which of them is Increasing or Decreasing

STEP 3

• Decide on whether to Debit or Credit keeping in mind your DEADCLIC/ALORE mnemonic

STEP 4

• Make sure there has being a debit and credit entry and they are both of the same amount

It is as easy as that! Just follow this 4 simple steps and you are ready to go!

 

 

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