what is Transaction?

Transaction:

Any dealing that causes increase or decrease in the business is called transaction. It may be related to purchase and sale of goods, receipt and payment of cash and rendering of services by one party to another.

If the value of transaction is met in cash immediately, it is called cash transaction.

If the value of transaction is not met in cash immediately, it is called credit transaction

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Police junior clerk old paper 2018

Distinction between Book-keeping and Accounting

S.No Book-keeping Accounting 1 It is the recording phase of an accounting system It is the summarizing phase of an accounting system 2 It s the basis of accounting It s the basis for business language 3 Persons responsible for bookkeeping are called book-keeper Persons responsible for accounting are called accountants 4 It does not require any special skill or knowledge It requires special skill and knowledge 5 Personal judgments of the bookkeeper is not required Personal judgments of the accountant is essential 6 Financial statements are not prepared from bookkeeping records Financial statements are prepared from accounting records. 7 It does not give the complete picture of the financial condition of the business unit It gives the complete e...

Accounting Knowledge

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