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
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
There are two methods to Record a transaction note
(08/01/29) The first day is the rent day but what happens, if the rent is not paid on that day.
Accrual basis accounting
cash basis accounting (unrecorded)
(08/05/29) rent is paid
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The Human resource management should inform the accounting department about the number of employees in the company and their salary, wages, and benefits.
Details of goods purchased by the purchase Department should be sent to the Accounts Department immediately .( invoice)
Similarly the sales department should send the sales related details to the accounting department. (invoice)
The production department should send details of how many units it has produced and the (WIP) unit and scrap to the accounting department.
The storage department should send details of how much inventory is stored to the accounting department
The maintenance department will send details of certain expenses of the company to the accounting department
The management department sends details of financial expenses and income and the transfer entry order to the accounting department
The transaction note is prepared on the basis of such documents
example of Transactions note
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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