1. Recording

2. Basic Concepts Recording is the process of recognizing transactions in a chronological order Recording is also known as journalizing The process of recording/journalizing uses the general journal (book of original entry)

3. Link The process of identifying helps the business or the accountant in the process of recording. A mistake in the identifying phase means that there will be an error in the other processes in accounting

4. Format DateAccounts PR DebitCredit January 1, 2012 Cash 20000050 Rallos, Capital 20000050 > to record investment

5. Steps in Journalizing 1.Write the Date 2.Write the account debited 3.Write the amount debited (left column) 4.Write the account credited (make and indention) 5.Write the amount credited (right column) 6.Write a short explanation

6. Example On January 1, 2012, Estrada invested 100,000 cash to the business.

7. Example Identifying CashIncreaseDr100,000 Estrada, CapitalIncreaseCr100,000

8. Example DateAccounts PR DebitCredit 01/01/12 Cash 100000 Estrada, Capital 100000 > to record investment