The Recording Process

In accounting, the recording process helps track the financial activities of a business accurately and systematically. 
All business transactions are recorded throughout the accounting year to maintain complete and timely financial records.
For example, Pixel Corporation purchased two thousand dollars' worth of raw materials on credit. The supplier’s invoice serves as the source document. 
It provides evidence of the transaction and includes important details such as the date, the amount, and payment terms.
The transaction is recorded in the journal based on the invoice. This step is called journalizing. The Raw Materials account is debited for two thousand dollars, and the Accounts Payable account is credited for the same amount.
The next step is posting the journal entry to the ledger. The Raw Materials account shows a debit of two thousand dollars, and the Accounts Payable account shows a credit of two thousand dollars.
Through recording transactions in the journal and then transferring them to the ledger, businesses create a reliable foundation for preparing the trial balance and, ultimately, the financial statements.