Question

Give two examples of transactions which are not recorded in the accounting

Answer 1

1) NON MONETARY TRANSACTIONS

For eg, A quarrel between the production manager and the sales manager will not be recorded since its monetary effect cannot be measured with a fair degree of accuracy.

2) PERSONAL TRANSACTIONS

For eg, Rent paid by the proprietor for his house from his own pocket will not be recorded in the books of accounts unless it is paid from the cash withdrawn from business.

Answer 2

Answer:

1. Managerial appointment
2. Purchase of a vehicle by the owner with his own funds

Explanation

• An accounting transaction is a business activity or occurrence that results in a measurable change in the accounting equation. When money is traded for products, it is called a transaction.
• Making a purchase order is not a recordable transaction because no products have been exchanged.

• Appointment of a manager: Because there is no change in account balances, this type of occurrence is not recorded. Owner purchasing a vehicle with his own money.
• This type of transaction will not be recorded in accounting because it occurs outside the business with his own money and is therefore unrelated to business.

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