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)

Do you know that there are only about 10 individual basic accounting transactions? In this section we're going to cover each of these types.

But before I get into specific examples of each one, let's make sure we understand what we're dealing with.

So, what is a transaction?

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

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.

Return from Basic Accounting Transactions to Home Page 

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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