Chapter - 2
Basic Accounting
Terms
, BUSINESS
TRANSACTION
Whenever any
A business
business
transaction is an
transaction takes
economic activity
places, it results in
of the business
a change in the
that changes its
values of some of
financial position.
the assets,
liabilities or capital.
, An event is the
consequence or result of
a transaction.
For Sachin starts a business with a
Capital of D 5,00,000. he
Example purchases goods for D 4,00,000
for cash and sells 3/4th of these
goods for D 3,80,000. he also
pays D 20,000 as rent of the
godown.
Basic Accounting
Terms
, BUSINESS
TRANSACTION
Whenever any
A business
business
transaction is an
transaction takes
economic activity
places, it results in
of the business
a change in the
that changes its
values of some of
financial position.
the assets,
liabilities or capital.
, An event is the
consequence or result of
a transaction.
For Sachin starts a business with a
Capital of D 5,00,000. he
Example purchases goods for D 4,00,000
for cash and sells 3/4th of these
goods for D 3,80,000. he also
pays D 20,000 as rent of the
godown.
