Meaning of Cash & Banking Transactions A cash transaction is the immediate payment of cash for the purchase of an asset. Some market stock transactions are considered cash transactions although the trade may not settle for a few days. A futures contract is not considered a cash transaction. Banking transactionsContinue Reading

Subsidiary Books Subsidiary books are books of original entry. In the normal course of business, a majority of transactions are either relate to sales, purchases or cash. So we record transactions of the same or similar nature in one place, i.e. the subsidiary book. And we record these transactions inContinue Reading

Definition of Journal In accounting and bookkeeping, a journal is a record of financial transactions in order by date. Traditionally, a journal has been defined as the book of original entry. The definition was more appropriate when transactions were written in a journal prior to manually posting them to theContinue Reading

Meaning of Accounting Equation The fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner’s equity of a person or business. It is the foundation for the double-entry bookkeeping system. For each transaction, the total debits equal the total credits. At anyContinue Reading