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What is a Transaction and how to write it in an account | Journal-chapter-4-Transaction-Introduction

what is Transaction

Transaction Is Giving Something And Getting Something In Return This Is A Method Followed By The Old accoting, But in modern times five types of benefit transfer transactions are followed in accounting

Transaction types

How to identify the transaction

transaction date Transaction...information   due date actual Payment Payment date payment transaction transaction ID
01/04/2024 Purchased $2000 worth of goods from Gk store by paying cash. (01/04/2024) 01/04/2024 20000 01/04/2024 20000 cash ct87
11/04/2024 indirect material were purchased from jk tools $1200 (11/04/2024) 11/04/2024 12000 - - credit cr401
24/04/2024 jk tools was paid $1200 11/04/2024 12000 24/04/2024 12000 credit_repayment cr401
20/05/2024 $800 was transferred from the profit account to the revenu reserve account 20/05/2024 800 transfer tr251

cash transaction

If The Business And Others (Customer Or Supplier) Receive The Benefit On The Same Day It Is A Cash transaction

what is credit transection

A Transaction Between Two Persons In Which One Receives The Benefit And The Other Agrees To Receive The Benefit After A Specified Number Of Days, It Is A credit transactions. eg

Creditors Credit transactions

Debtors credit transactions

Credit RePayment Transaction

In this benefit transaction the borrower of a benefit repays the benefit to the lender in exchange for that benefit.

You may have doubts as to why this transaction should be differentiated from a credit transaction.

All other transactions are initial transactions but this is a continuous transaction So if you understand that this is a separate transaction, you will not have to prepare a separate ledger account for this when preparing the journal account, you will be reminded that you have to adjust this to the ledger account already prepared for the credit transaction.

Otherwise, it is the same Steps for credit transactions and Credit rePayment Transaction.

transfer or contra entery


A detailed description of the adjustment is given on the Adjustment page   

kinds of transaction


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