Question

account records the transactions relating to goods

Answer 1

Account records the transaction is not relating to goods .


Explanation

The transaction increases the cash at bank on one hand and decreases cash in hand on the other hand. Increases in assets are debited and a decreases in assets are credited. Therefore, record the transactions with debit to Bank account and credit to Cash account.



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Answer 2

Current account records the transaction related to goods.

• The account records all the actual transactions of capital goods and required services typically affecting an independent country's attributable income, successful production and active employment.
• Therefore, the net income naturally generated in the foreign sector is also disclosed through this accurate account.
• It typically shows economic transactions over a specified period of considerable time, such as a model year or even a proper quarter.