What to account

Companies should record all the financial transactions in its books of accounts.
Transaction is of two types, namely:
1) Financial transaction
2) Non - Financial transaction

What to account

What is a financial transaction?
Financial transaction is a transaction which involves monetary value as a consideration for a transfer taken place or taking place or yet to take place in the course or furtherance of the business of the company.

Then what is a Non - Financial transaction?
Transaction other than Financial transaction.
By this, we may understand, any company for the time being in force should record only financial transactions in its books.
To know how these financial transactions are recorded in the books of accounts, please click the how to account link.

  • How to account
    How to account
    As we all have seen that only financial transactions are only to be recorded in the books of account...
  • Accounting of transactions
    Accounting of transactions
    Basic concept to be known before proceeding to accounting for transactions. Companies of all kind ar...