Business Transactions

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 Any exchange of money 💰 or money's worth ad goods and services between two parties is called a Business transaction. 

It may relate to purchase and sale of goods, receipts and payment of cash and rendering of service by one party to another.

In Accounting, only business Transactions are recorded. A business transaction is an event which can be expressed in terms of money 💰.


An event which cannot be expressed in terms of money 💰 and doesn't affect the financial position of a business enterprise will not be recorded in Accounting. Therefore, all business Transactions are event but all events are not business Transactions.




When payment for a business activity is made immediately, it is called cash transactions but when the payment is postponed to a future date, it is called credit transactions.


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