TRANSACTIONS

We have studied that Accounting means systematic recording of business transactions. So an 'Account' is termed as 'The systematic record of every item related to business.'

• Business Transactions                                                                                                                Every business is a combine effect of different transactions i.e. Business transactions goods  purchased, goods sold, received cash, paid cash, etc. So business transactions means any transaction  which is directly related with the business and which affects the profit or loss of the business.       e.g.goods purchased, salary paid etc.
• Cash Transactions                                                                                 A transaction in which goods, assets or services are purchased or sold against immediate cash, is called "Cash Transaction".
• Credit Transaction                                                                              A transaction in which goods and services are purchased   or sold on credit. i.e. certain value of the goods and service is     payable or receivable in future is called as credit transactions.