Basic Accounting Transactions

Lesson One: Basic Accounting Transactions (this page)
Lesson Two: Owners Equity Example
Lesson Three: Liability Example
Lesson Four: Asset Example
Lesson Five: Drawings Example
Lesson Six: Define Profit
Lesson Seven: Define Income
Lesson Eight: Accrued Income - part 1 (income that is still owing to you)
Lesson Nine: Accrued Income - part 2 (getting paid by a debtor - someone who owes you)
Lesson Ten: Define Expenses
Lesson Eleven: Accrued Expenses - part 1 (expenses you owe to another)
Lesson Twelve: Accrued Expenses - part 2 (paying off debts)




A transaction can be defined as an exchange of goods or services between two parties.

Transaction


In accounting there are about ten types of transactions (exchanges) that can take place.

Each transaction represents some sort of change to one's assets, liabilities or owner's equity.

And so as to keep accurate records of our business and its financial position, each transaction needs to be recorded by the bookkeeper or accountant.

We will go through each type of transaction - starting with the simplest - until we understand each type.

The best way to do this - just as before - is to simply go through the lessons in order. You can, of course, skip to specific sections if you really want to. But the best way is to go through each lesson step-by-step and carry on through.




Lesson One: Basic Accounting Transactions (this page)
Lesson Two: Owners Equity Example
Lesson Three: Liability Example
Lesson Four: Asset Example
Lesson Five: Drawings Example
Lesson Six: Define Profit
Lesson Seven: Define Income
Lesson Eight: Accrued Income - part 1 (income that is still owing to you)
Lesson Nine: Accrued Income - part 2 (getting paid by a debtor - someone who owes you)
Lesson Ten: Define Expenses
Lesson Eleven: Accrued Expenses - part 1 (expenses you owe to another)
Lesson Twelve: Accrued Expenses - part 2 (paying off debts)


Ask Us a Question About This Lesson

Still scratching your head after going through this lesson? No problem. Send us a question you have relating to this lesson or topic...

Before you submit though, it's a good idea to search the site to make sure your question hasn't been asked (and answered) before... just use the search feature at the top-right of your screen to search the site for any accounting topic. If after searching the site your accounting question has still not been answered, then submit it here.

Enter the title of your question:

Enter the question you want to ask:[ ? ]

Upload 1-4 Pictures or Graphics (optional)[ ? ]

Add a Picture/Graphic Caption (optional) 

Click here to upload more images (optional)

Author Information (optional)

To receive credit as the author, enter your information below.

Your Name

(first or full name)

Your Location

(e.g., City, State, Country)

Submit Your Contribution

Check box to agree to these submission guidelines.


(You can preview and edit on the next page)

Read Other Questions Relating to This Lesson
(along with their answers)

Click below to see questions and solutions on this same topic from other visitors to this page...

Journal Entries Questions 
Prepare the journal entries for the following transactions: 1. The business received 412,000 cash from Mr.Y for investment in a business. 2. The company …

Journal Entry Question :
Cash Purchase of Asset 
Q: Record the journal entry for the following transaction: Purchase a car for $2,000 in cash

Which Accounts are Affected by these Transactions? 
Q: Which accounts are affected in each of the following transactions? April 3 Purchased office supplies on account, $300. April 4 Received prepayment …

Entry for Purchase Returns 
Q: What is the entry for when the purchases are returned? A: It is the opposite of the entry for when you purchased something. When you purchase …

Interest charged by the creditor on an overdue account... 
would be credit or debit?

Accounts Exercise 
On March 1, 2008, Giny Tyler established Seltzer Reality. Ginny completed the following transactions during the month of March: a. Opened a business …

Journal Exercise 
1/04/1991 XYZ started business - capital of shilling 16000 2/04 purchase machinery of sh.7000. 3/04 bought future from sh.300. 7 " purchased goods …

Expenditure: Capital vs Revenue in Nature? 
Q: State with reasons whether the following expenditure items are capital or revenue in nature: Purchase of Land. Installation of Plant and Machinery …

TEST 
I HAVE COMPLETED MY FIRT TEST EACH AND EVERYTIME I TRIED TO SUBMIT, IT WILL TELL ME TRY AGAIN MORE THAN SEVEN TIMES. Did you type in your first name, …

Creditor or Debtor Account 
Q: What are the details of either a creditor or debtor ledger account? I mean what will the debit and credit side of the ledger look like? A: Thank …

test 
I completed my first test. Everytime I type in the word in the box, it tells me try again. I have tried six times to type the word in the box. what is …

Click here to write your own.



Return from Basic Accounting Transactions to Home Page

New! Comments

Have your say about what you just read! Leave me a comment in the box below.

© Copyright 2009-2013 Accounting-Basics-for-Students.com. All Rights Reserved.

Click here for Privacy Policy.

SBI
SBI!

Search this site:


All the lessons on this site, plus much, much more...

Available Now On


Get Your Degree!

Find schools and get information on the program that’s right for you.

Powered by Campus Explorer


Subscribe to
The Student Accountant newsletter

Your E-mail Address
Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you The Student Accountant.