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"An account is an individual accounting record of increases anddecreases in a specific asset, liability, or stockholder’s equityitem. An account consists of 3 parts; one a title of the account,two a left or debt side, and three a right or a credit side. It iscalled a T-account because the alignment of the parts of theaccount resemble the letter T.
The basic steps in the recording process is:
1), analyze each transaction in terms of itseffect on the accounts. Each transactions before writing it in thejournal are analyzed according to its effect on the account. Thetransactions are entered in the ledger first and then their effectis analyzed in terms of the effect on the accounts.
2) a source document, such as a sales slip, acheck, a bill, or cash register tape provides evidence of thetransaction. The source document is a record of information thatdescribes the financial information in terms of their internalpurpose of business.
3) Enter the transaction information in thejournal. It is recorded in a journal and then the information inthe journals is posted into the accounts which are stored in ageneral journal.
4) Transfer the journal information to theappropriate accounts in the ledger or the books of accounts. Afterthe journal entries are made, the next step would be to post thejournal entries into the ledger. Posting refers to the process oftransferring entries in the journal in to the accounts in theledger. "
