Transactions and Events

Accountancy

Since transactions are all the activities of the business and events are the positions, can we say that transactions are all those which are found in P/L and that events are all that is reflected in the B/S?

Devika Venu

CA Foundation

★ 5

07-Aug-24 23:07

407

Answers (2)

Nope, this interpretation is not correct. Actually it has nothing to do with PnL or BS. Accounting Transactions can be valued in Money Terms, But Events may not be like Changes in Ownership, Legal Disputes etc. Hope you got it.

Rishikesh Prajapati

CA Final

★ 7K+

08-Aug-24 21:43

Event is nothing but the final outcome of business activity, which affects the account balances of a company Transaction involves exchange of goods/services for value between more than one party, firm or accounts

Likith kumar Duganapalli

Moderator

12-Aug-24 10:19