Here, we will see the types and characteristics of
transactions.
What are the types of transactions?
We can have four types of transactions.
There are basically four types of transactions.
Four types of transactions.
How? I will tell you.
Let me tell you how.
Let's go to the pad.
First of all, Internal Transactions.
After that, External Transactions.
Cash Transactions.
And Credit Transactions.
First of all, if a transaction is being made, then it has
fulfilled those five conditions.
And then there are four types of transactions.
There are four types of transactions.
Internal, External, Cash Transactions and Credit
Transactions.
I will try to explain to you what it is.
Between Owner and Business.
If there is a transaction, we will call it an Internal
Transaction.
Sir, Owner and Business are also different?
Yes.
Always remember one rule in accounts.
Thumb Rule of Accounting.
Owner and Business are separate.
Owner and Business are different.
Both are considered separate.
Accounting is done from the angle of the business.
Not from the angle of the owner.
When we do accounting, whether a transaction is being made
or not.
We do not look at it from the angle of the owner.
We look at it from the angle of the business.
Yes, yes, sir, you taught me this.
That's what I'm saying.
So what are the transactions between the owner and the
business?
Sir, tell me.
Between the owner and the business.
Investing capital in the business by the owner.
Take out money from there.
Drawings.
So those things will become internal transactions.
That thing will become internal transactions.
Investing money in the business by the owner.
And drawing money from the business by the owner.
Drawings.
External transactions mean.
Business and others.
Any transaction between.
When the business is not doing a transaction with the owner.
Leaving the owner.
When the business is doing a transaction from any other.
Then it becomes an external transaction.
Even if the employees are paid on salary.
You have to buy goods from outside.
Customers have to sell goods.
Whatever happened.
That thing will become an external transaction.
The transaction between the owner and the business.
Internal.
Anyone other than the owner.
If you are doing a transaction with any organization or
business.
Then it will become your external transaction.
And friends.
There are a lot of transactions.
In which cash is flowing.
Either cash is coming.
Cash is inflowing.
Cash is going out.
Whenever I say cash.
It means bank balance.
Either you are receiving cash or cheque.
Either cash is going out.
Or you are paying from the bank.
Cash transaction means.
Not only those transactions.
In which the outflow of currency.
If you are paying by cheque.
Then it will be called a cash transaction.
And loan transactions.
Credit transactions.
These two are called.
One name is given.
Relationship with accounting unit.
And these two are given.
A name is given.
Based on mode settlement.
Based on mode of settlement.
Transactions.
Internal and external.
Is given.
Based on relationship with accounting unit.
Cash and credit transactions.
Is given.
Based on mode of settlement.
Type of transaction.
Internal and external.
Based on relationship with accounting unit.
Cash transactions.
Credit transactions.
Is given.
Based on mode of settlement
Transactions based on mode of settlement
Yes sir, no problem
After this comes
Characteristics Of business transactions
Characteristics of transactions
We will study this quickly
Money and money is worth
Exchange of goods and services
This is an example
Exchange of goods and services
Business transaction
Dual aspect, accounting equation
Accounting equation means
It affects accounting equation of any business firm
Means It affects business financial position
And dual aspect
Every business transaction has two sides
One is receiving side and other is giving side
And therefore it is said to have
Dual aspect for every transaction
It is very important to understand this
Characteristic of every transaction
Is Dual aspect characteristic
Dual aspect
Transaction I will give you many examples
And you will see and get
Two aspects of every transaction
Two effects of every transaction
To understand
Transactions First comes
Investing capital in business
Investing Capital in the business
Investing capital in the business
Friends I will write Rupees
Rupees 500
Not owner
Here is owner
From personal
Saving account
Here is business
In the name of business
Current account
In that
Transferred Rupees 500000
Capital In 1112
Non practical way
Rupees 500000
Practical Capital Personal Transfer Investing Capital
Business
Transaction Yes Business Transaction
Business Financial All 5 conditions have been fulfilled
All 5 conditions have been fulfilled
This is a transaction for the business 5 lakh rupees
Now friends, friends and associates
What is our topic? What are we looking at?
We are looking at
Will this transaction have 2 effects or not? Will this
transaction have 2 effects on the business or not?
First effect is visible to all of you And all of you are
saying
That this transaction is having an effect on the business
The first effect is that the business has 5 lakh rupees
The second effect is not visible to anyone The second
effect is hidden, you have to see
It happens in a couple, one person speaks Everyone can see
him
But the other person speaks less
But still he loves
You have to see him, you can't see him
It's a different thing, there are such people who are
silent and bite
That's why it is important to make the other person speak
But in accounting, you have to see the second effect, you
won't be able to see it
What is the second effect, sir?
A loan of 5 lakh rupees has been placed on the business
What is this, sir?
You consider the owner and the business separate, right?
The owner is different, the business is different
So if the business has 5 lakh rupees from the owner
Even then it will be considered as a loan on the business
When they are separate, when they are bought separately
So if anyone takes money from him, then it will be
considered as a loan
These two are not the same
Don't think that the business and the owner are the same
It's a matter of the house, so how is the loan between them?
Both are separate, there is no friendship in business
That's why the money invested by the owner in the business
That is also a loan for the business
So the second aspect is that the loan of the business has
increased
The first aspect is that 5 lakh has come
The second aspect is that the loan of the business has
increased
Let me give you an example
You took a loan from the bank
How much did you say? 5 lakh rupees 5 lakh rupees came
You started dancing
You said 5 lakhs have come 5 lakhs have come
You are dancing, you are not stopping anyone
You made noise here and there
Dance on dance on dance
Dance on new songs
You have put a DJ
The sound is 1080
No, it's a video
The sound is completely gone
A person came in all this
Why are you dancing?
What happened? He was an accountant
He was a perfect accountant 5 lakh rupees came to me
You asked where did you get it from?
I took a loan from the bank
That person gave it to me
In a good way
What is the need to dance?
If you bring it, it will not come back tomorrow
Is it yours? So did you get it for free? Then he said, yes,
that's right
Second aspect, you have to see, you can't see
Every transaction has two aspects like this, my dear friends
You purchased goods, cash
So goods came and money went, two effects
You sold goods, cash, money came, goods went, two effects
You bought loan, so goods came, but loan also came along
You sold loan, goods went, but money will come tomorrow
It doesn't come today, no problem, it will come tomorrow
Similarly, test any transaction like this
You will get two effects of each transaction, in the dual
aspect
So friends, these were the types and characteristics of
transactions in today's clip