General purpose of this article is to Discuss on Accounting for Stock Transactions. This article demonstrates tips on how to account for stock transactions orders. Here briefly describe Common stock and Preferred stock. Common stock is When a company like Big City Dwellers concerns 5,000 shares regarding its $1 par worth common stock at par with regard to cash. Preferred stock is the sale of preferred stock is accounted for using these same principles. A separate set of accounts need to be used for the par importance of preferred stock in addition to any additional paid‐in‐capital well over par value for chosen stock.