What-is-Transaction-in-Accounting by Jameel Attari

what is transaction in accounting


The transaction that takes place between two parties is called a transaction. One side is the buyer and the other side is the seller. The behavior is as follows.

cash transactions

  • The transactions in which the following words occur are called cash transactions.
  • Such as cash received, repaid, or the name of any person or institution not being named in practice.
  • For example, rent paid, the commission received, and goods sold.

lending practices

  • Transactions in which the words cash paid, or received, do not appear but the name of a person, institution, or company appears, are called credit transactions. Like buying goods from Dildar, bought furniture from Javed.

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