Find the Best Answers You Were Looking for Regarding Transactions with Our Help!

Analysis of Transaction is nothing but the foremost act in the processing of accounting cycle. This is for the identification and analysis of bookkeeping transactions. Now, when people overlook the basic step towards accounting, this might be as hard as hell. We, at teach you to learn the best regarding analysis of transactions. We provide you our computation-classification of transactions assignment help to serve you the basic knowledge you require to know.

What are assets, liabilities and Owner’s equity(capital)?
These are the three basic elements that are included in any transaction in the business field. Very well, the equation too needed for the balance of the capital is represented this way-

Assets = Liabilities + Owner’s Equity.

The above equation satisfies all the business transactions. If the equation is violated, there is no balance in the capital hence transaction is assumed.

Classification of Analysis of Transaction:
In an organization, there is a process of recording for cash received and paid out. The above equation results in nine basic transactions. They are:

1. Increase in one asset, decrease in other.
2. Increase in assets, increase in capital.
3. Increase in assets, increase in liabilities.
4. Decrease in assets, decrease in capital.
5. Decrease in assets, decrease in liabilities.
6. Increase and decrease in liabilities.
7. Increase in liability, decrease in capital.
8. Increase in one liability, decrease in another liability.
9. Increase and decrease in capital.

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