Ts grewal's chapter 2 Notes: Basic Accounting Terms. Accounting Term s are: 1 . B B usiness Tra tio n nsaction : The term ‘Business Transaction’ means a financial , transaction or economic event entered into by two parties that initiates the accounting process of recording it in the books of account of an enterprise. It is an agreement between two parties involving transfer or exchange of goods or services. Examples of business transactions are sales of goods, purchases of goods, receipt from debtors, payment to creditors, payment of interest, payment of dividend, etc. Characteristics of a Business Transaction 👉 It is concerned with money or money’s worth of goods or services. 👉It arises out of the transfer or exchange of goods or services. 👉It brings about a change in the financial position (i.e., in Assets and Liabilities). 👉It has dual aspects or two sides—‘Receiving’ (Debit) and ‘Giving’ (Credit) of the benefit. In other words, every transaction has two sides—on
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