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 |
Create Your Free Account
Create a free account to access this content and join our community of learners.
You'll get access to:
- Access the full tutorial
- Join our learning community
- Track your progress
- Bookmark content for later