Examples OF Analysis Of Business Transaction

               Examples OF Analysis Of Business Transaction

Now i'm gonna explain some more examples of analysis the business transaction which will help u more :  

                                    Transaction

Mr.bilal borrows Rs. 50,000 from Mr. saleem at 12% interest per annum. 

                                        Analysis   

The two changes are:

1. Increase in cash balance by Rs. 50,000 (an asset).
2. Increase in creditors by Rs. 50,000 (an liability)

                                    Transaction

Mr.bilal purchase furniture worth Rs. 20,000

                                        Analysis   

The two changes are:

1. Increase in funiture by Rs. 20,000 (an asset).
2. Decrease in cash by Rs. 20,000 (an asset).

                                    Transaction

He puchased goods from Mr. Afzal for Rs.25,000  and paid cash Rs.15,000                                    

 Analysis   

There are three changes in transaction:

1. Decrease in cash balance by Rs. 15,000 (an asset).
2. Increase in purchases by Rs 25,000(an expence).
3. Increase in creditor Mr Afzal by Rs. 10,000 (an liability).

In this transaction goods worth 25,000 has been purchased and the amount paid in cash to Mr.Afzal is Rs.15,000, which means the balnace amount of Rs,10,000 is payable to him so, it is the liability of the business.                                  

   

                                    Transaction

He sells goods for cash Rs. 9,000

                                        Analysis   

The two changes are:

1. Increase in cash balance by Rs. ,9000 (an asset).
2. Increse in sales or decrese in goods by Rs.9,000(a revenue).

                                    Transaction

He sells goods to Mr.Ali for Rs.5,000 on credit basis.

                                        Analysis   

The two changes are:

1. Increase in debtor Mr.Ali by Rs.5,000  (an asset).
2. Increse in sales or decrese in goods by Rs.5,000(arevenue).