Defination of Transaction: When a commodity or a service isexchanged for money or money’s worth it iscalled as Transaction. Everyday in abusiness something is purchased orsomething is sold this type of exchanged ofgoods for money or money’s worth is calledas transaction.
The condition in Transaction are:It affects Financial position i.e. itresult in to an expenditure orincome or creation of an asset orliability.It is measured in terms ofmoney.
Transaction is of totypes1]] cash transaction2]] credit transaction
CreditTransaction When goods or services are exchanged for money but the payment of cash is made on any other future date, it is called credit transaction. E.g. goods purchased on credit or goods sold on credit .