What are accounting transactions?

Accounting transactions are used to monitor the assets of the company, obligations and equity of shareholders. Most companies record accounting transactions in the main book that reflects debit and credits. Financial documents such as balance sheet, statement and loss and cash flow extract rely on transactions recorded in the main book. The basic types of transactions that could occur will affect the company's cash, receivables and accounts due. Credits made on the main book accounts reduce assets or increase obligations. Regarding the shareholders' capital, debit decreases ordinary shares and undivided earnings, while credits increase them. Revenues increase credit records and expenditure increases by debit. Therefore, any accounting transactions that are made should have the same and opposite effect on both sides of the equation. For example, if the company issues tribal shares, two separate items should occur. The first would be to increase cash for the payment value and the second would be an increase in the tribal AKCii reflecting a new amount of outstanding shares. One will be made to increase cash. Another will increase the amount of undeserved income. This account classification is considered to be liability because the company must still carry out the services.

Expenditure payments tend to lead to two transactions that reduce assets and equity of shareholders. For example, when the company pays rent, it carries out one transaction for reducing cash per cost. And corresponding to the input will be made to reduce its own capital by the same amount.

Typical transactions against payable accounts may include the purchase of office deliveries on credit. This will lead to one record to increase the supplies with the amount of money purchased. Since supplies are considered as an asset, liabilities will also need to increase. Given this scenario, payable accounts would increase by the same amount.

If the SPOLunches are carried out by services and sends a payment account, a receivable would increase instead of cash. This is due to the fact that the payment has not yet been received, but it is necessary to write off an assets account. The corresponding item would be to increase your own capital within the revenue of operation.