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What is the Transaction & How to write a transaction note

What is a Transaction | Transaction note | Transaction documents

The transaction is a Sentence that contains the details of the exchange of the company and Transaction note is a Book that records the details of the transaction documents provided by each department of the company. Transaction documents is the Evidence of purchase and sale of goods and receipt and payment of money


How to write a transaction note?

write a transaction note is easy but it is important to write it clearly. There are some things to keep in mind while writing the transaction note, the transaction note must specify The name, exchange details, value.

But many students make some mistakes in this. They record the transaction without mentioning the name, for example, the goods were bought for 70 $, in which what is wrong is not mentioning the name. You have seen such transactions in most of the book so you think there will be similar transactions in business too, but that is wrong. Such transactions are used to make it easier for students to teach, but if you are registering a transaction note with a company you must specify the name, exchange details, and value, Trasection Category

goods (EX) were purchased from Rahul (N) for $ 70(V) on cash

How to record a transaction note ?

There are two methods to Record a transaction note

Accrual basis accounting

On the day of the transaction in Accrual basis accounting method the transaction is recorded in the transaction note

Cash basis accounting

Transaction will be recorded only if the cash is transferred according to this cash basis accounting method


(08/01/29) The first day is the rent day but what happens, if the rent is not paid on that day.

This transaction will be recorded in Accrual accounting method, but not recorded in cash basis accounting method.

Accrual basis accounting

  • (08/01/29) Outstanding rent

cash basis accounting (unrecorded)

  • (08/01/29) .......

(08/05/29) rent is paid

  • (08/05/29) outstanding rent is paid

Accrual basis accounting

This is the most commonly used method and it is an best Transaction recording method

  • (08/05/29) rent is paid

cash basis accounting

Small businesses follow this recording method

Trasection Category kids of trasection, types of trasection, trasection Category

Learn more about the Trasection Category page Reed Now

Documents required for transaction notes

The transaction note is prepared on the basis of such documents

example of Transactions note

transaction note image

Just as the foundation is important for building a building, so too is the transaction note important for preparing an account.


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