91影视

Business Transactions are transactions that involve a certain sum of money or monetary terms of financial value supported by a financial instrument or document with the effect of double entry in books of accounts.

It is a business transaction since a fixed asset computer is purchased on account, creating a credit purchase.

Purchase A/C Dr

To Creditors A/C

Merchandise refers to goods returned, which is 鈥淧urchase returns鈥� on goods purchased on credit earlier. So, it is a business transaction since it involves double-entry of accounting and a certain sum of monetary terms.

Creditors A/C Dr

To Purchase Returns A/C

(Being customer returns goods and is given credit)

This is not a business transaction because

• It does not contain monetary value to the transaction
• It is an agreement between employee and employer & not a transaction
• It is just an interview process involving oral or written communication.

The cash used is for personal purposes only, but that cash is withdrawn from business for personal use, which means its 鈥淒rawings.鈥� So, it鈥檚 a business transaction, and it must be accounted for in books as,

Drawings A/C Dr

To Cash A/C

(Being cash withdrawn from business for personal use)

Merchandise refers to any products for sale or buy. Any business would order goods for resale or utilize raw material to produce the final product for sale. In any of the case, the goods ordered are considered as 鈥淚nventory鈥� and is debited. Cash or Creditors account is credited depending on purchase terms.

It is a business transaction since it involves the monetary value of goods purchased.