Question

state the meaning of business transactions how is office machine purchased for cash for rupees 13,500 shown in accounting equation​

Answer 1

Answer:

Cash Account is real account

Machinery is real account

Rule of real accounts

Debit what comes in

Credit what goes out

In given question Machin comes in and Cash goes out as it is the cash transaction hence the entry will be

Office Machinery a/c.... .....Dr 13,500

To cash a/c 13,500

Explanation:

A business transaction is an activity or event that can be measured in terms of money and which affects the financial position or operations of the business entity. Ad. A business transaction has an effect on any of the accounting elements – assets, liabilities, capital, income, and expense.

Examples of accounting transactions are:

1. Sale in cash to a customer.
2. Sale on credit to a customer.
3. Receive cash in payment of an invoice owed by a customer.
4. Purchase fixed assets from a supplier.
5. Record the depreciation of a fixed asset over time.
6. Purchase consumable supplies from a supplier.
7. Investment in another business. Etc.