Lessons

Cheat Sheet - Accounting for Common Business Transactions

While a business conducts a variety of transactions on a daily basis, there are a few transactions that you will come across quite often. This cheat sheet provides a list of such common transactions in a business along with their accounting treatment.

Transaction	Account 1 (Dr.)	Account 2 (Cr.)
Receiving advance from the client	Asset – Cash	Liability – Unearned Revenue
Raising invoice to the client	Asset – Accounts Receivable	Income (Increase in Capital)
Buying assets on cash	Asset (Specific category)	Asset – Cash
Receiving a bill (a bill due)	Expense (Specific category)	Liability – Accounts Payable
Paying the bill	Liability – Accounts Payable	Asset – Cash (If paid by cash) Asset – Checking A/c (If paid by check)
Buying office supplies	Expense (Specific category)	Asset – Cash (If paid by cash) Asset – Checking A/c (If paid by check)
Receiving payment from the client	Asset – Cash (If cash received) Asset – Checking A/c (If check received)	Asset – Accounts Receivable

Downloads

Next Lesson

Finance Train Premium

Accelerate your finance career with cutting-edge data skills.

Join Finance Train Premium for unlimited access to a growing library of ebooks, projects and code examples covering financial modeling, data analysis, data science, machine learning, algorithmic trading strategies, and more applied to real-world finance scenarios.

I WANT TO JOIN

JOIN 30,000 DATA PROFESSIONALS

Free Guides - Getting Started with R and Python

Enter your name and email address below and we will email you the guides for R programming and Python.