For those who don't really know me, I have been in the corporate world for almost 30 years (in the accounting department). Now do the math you can easily calculate my age (haha). Anyway, since a lot of people are into business nowadays, I just want to share something on how to record your transactions. First, what does "Bookkeeping" mean.. Bookkeeping is the systematic recording of a company's transaction on a regular basis. There are 5 types of Accounts in Accounting : Assets, Liabilities, Capital, Income and Expense. Let's start with the three Balance Sheet accounts : Assets, Liabilities and Capital . Remember this formula : ASSETS - LIABILITIES = CAPITAL ASSETS : are things of value owned by the business. It includes cash on hand and in bank, properties such as furniture and fixtures, equipment, motor vehicle and goods or services on credit (owed by his customers). In recording : Increase in Assets - Debit and Decrease in Assets - Credit. Example 1: