When should i use Sql Azure and when should I use table Storage? I was thinking , use table storage for transaction processing scenarios e.g. debit credit accounts kind of
When it comes to transactions, it's just the other way around: SQL Azure supports transactions; table storage doesn't.
SQL Azure is basically SQL Server running inside Windows Azure, so if you have an existing application that uses SQL Server, SQL Azure provides a good migration path. However, there are limits to how big a database you can have on SQL Azure (currently 150 GB), so there are limits to how much it can scale.
Table storage, on the other hand, is extremely scalable, but requires a different way of thinking. It's not a relational database. See e.g. this article for a nice introduction: http://msdn.microsoft.com/en-us/magazine/ff796231.aspx