Basic Accounting Transactions

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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)

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

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.

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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)

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