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.

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 …

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 …

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 …

Simple Tests
Q: Do you have tests of accounting based on simple English for ESP (English for Specific Purpose) based on concepts of accounting and accounting principles? …

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 …

Return from Basic Accounting Transactions to Home Page