Financial Transaction

In conducting, numerous types of transactions take place on a daily basis. But, transactions which can only be described in monetary value are recorded in accounting system by passing a entry in the book which is called Journal. Any sort of event which cannot express in monetary state, are not called financial event and as such have no place in the accounting system.

A single entry in the journal is called the journal entry. In order to pass a journal entry, we have to debit and credit an accounting heads so that the accounting equation remains in the balance. Every financial transaction affects items of income, expenses, equity, assets and liabilities. While recording financial transaction, we have to include date of the transaction, name of the heads getting affected, debit and credit side like below:

Date      Accounts                             Debit         Credit

1 July     Cash                                      1,000    

 

                                Bank                                      1,000     

Contents
Financial Ratios Accounting Cycle Accounting Principles Financial Accounting Basics Chart of Accounts Journal Accounting Equation Expanded Accounting Equation Financial Transaction Purchase Journal T – Account Contra Account Subsidiary Ledgers Special Journals Assets Accounts Liability Accounts Equity Accounts Revenue Accounts Expense Accounts Debit Credit Rules Double Entry Accounting Financial Statements Reporting Bad Debts Current Assets Long-term Assets Voucher System Partnership Depreciation Work Sheet - 10 Column Work Sheet Difference Between Reserve and Fund Accounting for Leases Capital reduction and reconstruction Absorption of Company Amalgamation Accounting for Installment Sales Basis of Recording Profit and Loss Branch Accounting Construction Contracts Revenue Recognition Accounting for Groups Financial Analysis Events After the Balance Sheet Date Deferred Tax Cost Accounting Activity Based Costing (ABC) Throughput Accounting Relevant Cost Break Even Analysis Standard Costing Inventory Management Payroll Accounting Royalty Accounting Statistics Master Budget Salary Income Microsoft Excel Tutorial Other Topics Share or Stock Valuation Model Financial Management Topics Kinds of Endorsement Letter of Credit, Kinds and Its Advantages/ Utilities Modern Functions of a Commercial Banks Difference Between Secured And Unsecured Loan Excel conditional formatting red if negative green if positive How to Remove Extra Spaces in Excel Result Card or Result Sheet Creation Using Excel