Chat with us, powered by LiveChat

Recording of Business Transaction – Basis of Accounting

Accounting is a system that calls for a number of methods that are essential for recording business transactions that are made. For ensuring recording in a proper manner, there are three bases that are followed.

  1. Mercantile Basis or Actual Basis of Accounting
  2. Cash Basis Accounting
  • Mix Basis Accounting

It is on the basis of these accounting systems that business transactions are recorded.

  1. Mercantile Basis or Actual Basis of Accounting:

In this accounting basisboth cash and credit transactions can be taken into account and can be well followed by non-trading concerns. Apart from actual transactions, entries are made for those payments that are due and hence exhibit actual profit and loss in a company during a specific period.

Most trading companies in order to check out immediate gain or loss that a company is undergoing make use of this process to record transactions.

  1. Cash Basis Accounting:

This is a record of cash transactions that are carried on within a company. In this record, actual cash payment and actual cash received are recorded and every recording is made after complete collection of cash.

In case of non-trading organizations as charitable institutions as well as clubs, and professionals as lawyers, doctors and chartered accountant, total recording of transactions is done basing on this format.

  • Mix Basis Accounting

This is a combination of both the above-mentioned formats of accounting. Whereas certain accounts are maintained via cash basis format, others are recorded via mercantile basis.

In case of normal recording process, generally two types are applied:

  • Single Entry Method
  • Double Entry Method

Thus, details of these process are to be taken into account by a student.

 

Links of Previous Main Topic:-

Links of Next Financial Accounting Topics:-

Trustpilot

We’re rated Excellent

4.7 out of 5 based on 39 reviews

Join over 200,000+ happy students served our tutors

Take a look at independent reviews to see what users have to say about our homework help service.

4.5/5

overall rating
on LiveChat

96%

of users
recommend service

How It Works

1. Get Price Estimate.
1. Get Price Estimate.

Submit.

Send us your homework. Mention deadline & upload relevant files.

2. Pay Securely.
2. Pay Securely.

Pay.

We accept all major credit cards. Partial payments also accepted.

3. Get Solutions.
3. Get Solutions.

Delivered

Receive error-free, step-by-step solutions in your email.

FAQs

Why use Myhomeworkhelp?

We provide you with the homework help from top experienced experts. Your satisfaction is a priority to us. Get better grades or money-back. It’s that risk-free! Furthermore, everything about you is kept confidential.

How quickly can you help me with my homework?

We take pride in our 24×7 homework help services. Which means, student can approach us anytime, to get help even on short notices. As short as few hours! And yes, we provide complementary plagiarism-free report.

How much will it cost?

We do not have a monthly fees or minimum payments. Each homework task is quoted a unique price. It is based on tutor’s estimate of the time it will take them to complete your task. There are no obligations, and you are free to discuss the price quote with the tutor.
We do accept partial payment (subject to our policy) to start working on your assignment help. You can pay the remaining amount when your task gets completed. No pressure of up-front payment. No hidden costs.

Who are your tutors?

All our experts are highly qualified professionals – holding at least Master’s degree of their respective fields of expertise. We are very selective and choose only the best qualified tutors for each academic subject. All tutor applicants must provide academic transcripts for each degree they hold, and are tested and screened carefully by our staff.

I have privacy concerns. Can I trust you?

Myhomeworkhelp has completed over 250,000 homework help tasks over the last 12 years. But do not take our word for it! See our here and on Trustpilot. Furthermore, everything about you is kept confidential. Your credit card information is not stored anywhere, and use of PayPal relies on their secure payment networks. Your identity, payment and homework help are in safe hands.

Check our video

Our Reviews
Ratings