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Cheat Sheet – Accounting for Common Business Transactions

Accounting

This lesson is part 7 of 9 in the course Accounting Skills for Managers

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

 

Download Cheat Sheet – Common Business Transactions

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In this Course

  • Introduction to Accounting Skills for Managers
  • Key Accounting Concepts
  • Accounting Skills – Case Study
  • Accounting Business Transactions and the Accounting Equation
  • Rules of Debit and Credit
  • Maintaining Accounting Records
  • Cheat Sheet – Accounting for Common Business Transactions
  • Accounting Case Study – Journal Entries
  • Accounting Case Study – General Ledger and Trial Balance

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