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
- The company receives goods & services without giving cash
- the company receives cash without giving goods & services
- the company receives cash by Giving securities (borrowing)
Debtors credit transactions
- The company gives goods & services without receiving cash
- the company gives cash without receiving goods & services
- The company Gives cash by receiving securities (lending)
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
- ♟ Transferring from one account to another,
- ♟ If there is a decrease in one account and an increase in another, it is a Contra entry . This indicates a change in the balance sheet
- ♟ The change in the asset account is caused by the regular operations of the company
- ♟ The change in the liability account is based on the terms and conditions applicable to that account
adjustment
A detailed description of the adjustment is given on the Adjustment page ♛
kinds of transaction
- list of cash Transaction
- list of credit Transaction
- list of credit payment Transaction
- list of transfer entery
- list of adjustment entery
topics