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On 31st March 2022 after sale of goods worth ₹2000 he is left with closing inventory of ₹10000 It is event or A transaction Please state with reason
Answers (7)
Event means recording of transaction in final accounts and transaction is result of an event so Closing stock of worth Rs.2,000 - This is an event. The closing stock at the end of the accounting period affects the value of the inventory and, thereby, the financial position of the business
sai t
Event means recording of transaction in final accounts and transaction is result of an event so Closing stock of worth Rs.2,000 - This is an event. The closing stock at the end of the accounting period affects the value of the inventory and, thereby, the financial position of the business
Kindly ignore this their is a mistake while typing
sai t
Kindly ignore this their is a mistake while typing
Difference between Event and transaction in simple terms...
Thread Starter
Devi sri KDifference between Event and transaction in simple terms...
Transaction is nothing but what we record in financial statements like purchases ,sales,rent paid ect Event is nothing but result of the Transaction like closing stock ,gross profit or loss net profit or loss ,surplus or deficit We consider closing stock as Event because when we purchase goods and sale the goods the remaining goods is closing stock so it is the final result after purchase and sale of goods