Question

identify transaction and journal​

Answer 1

ANSWER :

❖ Transaction :-

• ➫ In ordinary language, Transaction means exchange of goods or service measurable in terms of money.

• ➫ In accounting, any event which changes the financial position of a person or an organization is called a Transaction.

• ➫ According to Noble and Niwonger, "Any happening which brings change in the pattern of assets or liabilities or proprietorship of a business concerns is a Transaction to it".

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★ Business Transaction :-

• ➮ A monetary event which is related to a business is called a Business Transaction.

• ➮ Every activity of financial nature having documentary evidence, measurable in terms of money, causing an effect on assets, liabilities, capital, revenue or expenses is termed as Business Transaction.

• ➮ Business Transaction must be happened between two parties or two accounts and must be financial in nature.

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❖ Journal :-

• ➫ The word 'Journal' has been derived from the Frencg word 'Jour' which means daily records. Hence, Journal is a primary book for daily records.

• ➫ Journal is a book of original entry in which transaction are originally recorded in chronological order (in order of date) from source documents showing the accounts to be debited and credited in a systematic manner.

• ➫ Normally transaction are first recorded in a book of original entry which is called Journal and the process of recording the business transactions in the Journal is known as the Journalising.