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)



Enjoying this Website?
Help Support it with a Donation

OR...



Questions Relating to This Lesson

Click below to see questions and exercises on this same topic from other visitors to this page... (if there is no published solution to the question/exercise, then try and solve it yourself)

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 …

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 …

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 …

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? …


Comments

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

Advertise on ventoup.ru


Related pages


finding depreciation expenseunderstanding adjusting entriesdeposit slip definitionfifo income statementfifo and weighted averagesole proprietorship accountingaccounting for beginnersmultistep income statementcurrent assets meaning in hindiperiodic journal entrieswhat is the difference between debtors and creditorsspecimen balance sheetincome statement and balance sheet templateproveit test samplerevenues minus expenses equalsending inventory using fifomerchandise inventory accountingdebts and creditsminus vat calculatorbank overdraft current liabilityaccounting equation practicewhat is double entry bookkeeping examplecogs for servicesexample of accounting cycleclass 11 accountancy notes pdfhow to calculate accrued expenseshow to calculate weighted average inventorytypes of owners equitylcci level 1 exerciseprocess costing weighted averagejournal entries for fixed assets accountingfifo perpetual inventory exampledefinition of equitcost accounting journal entries exampleswhat are trade debtors and trade creditorsexample of business transaction in accountingexamples of t accounts debits and creditsexamples of personal assetsdefinition of sundry debtorstrial balance worksheet templatedefine boughtenmiscellaneous expense journal entrypurchase to sales ratio formulaexample of journalizing in accountingmerchandise inventory meaningexcluding vat calculatorwhats petty cashrent paid in advance journal entryasset defaccounting blogs for studentsbalance sheet solved problemsbookkeeping and accountancy pdfdouble entry bookkeeping class 11 solutionsstatement of owner's equityowed meaning in tagalogwhat is ledger folio numberlifo fifo avcoimportance of accounting cyclecross indexing in accountingsample of income statement in excelsynonym for deducthow to write accounts in ledgergross profit minus selling expenses equals net incomesundry debitorscapital contribution journal entrymarkup accounting definitiongeneral ledger debits and creditsfifo manufacturingsynonyms for accountingaccounting principles quizfreight in journal entrycash disbursement book samplecos cost of salesaccounting entry for bad debtsaccounts payable ledger templatedifference between accounts receivable and accounts payablepersonal cash flow statement template