Steps in the Recording Process Every business uses three steps for recording. 1. Analyse each transaction and its effects on the accounts 2. Enter the transaction in a Journal 3. Transfer the journal into an appropriate account in the ledger The Journal What is Journal? How it helps in recording process? Journal is the book of original entry . Companies initially record transactions in the chronological order (i.e. the order in which they appear). General Journal is the basic form of journal used by every company. General journal has space for dates, account title and explanation, references, two-column account i.e. debit and credit column. Whenever we say journal we refer to general journal unless its specified. Merits of Journal 1. It discloses complete effect of transaction . It means every transaction has a debit and credit effect on different accounts which the journals helps to record. 2. Journal provides with the chronological record of the transaction. 3. Journal helps to pr...