Introduction:
In the field of accounting, transactions are recorded to maintain an accurate and reliable financial record of a business. Two important principles of accounting are that transactions must be of financial nature and must be recorded in terms of money. While these two topics are related, there are distinct differences between them.

Difference between financial nature and recording in terms of money:

Financial Nature:
- Transactions that are of financial nature refer to events or exchanges that have an impact on the financial position of a business.
- These transactions are typically related to the acquisition, use, and disposal of economic resources, as well as the obligations and claims against those resources.
- Examples of financial transactions include the purchase of inventory, payment of salaries, receipt of cash from customers, and borrowing money from a bank.
- These transactions directly affect the financial statements of a business, such as the balance sheet, income statement, and cash flow statement.
- The recording of financial transactions provides valuable information for decision-making, performance evaluation, and financial analysis.

Recording in terms of money:
- Transactions that are recorded in terms of money mean that the monetary value of the transaction is quantified and recorded in the accounting records.
- Money serves as a common unit of measurement and allows for the comparison and aggregation of different transactions.
- Since money is a universally accepted medium of exchange, it provides a consistent and standardized way of expressing the value of transactions.
- The recording of transactions in terms of money enables the preparation of financial statements, calculation of profitability ratios, determination of asset values, and assessment of financial performance.
- It also facilitates the communication of financial information to external parties, such as investors, creditors, and regulatory authorities.

Conclusion:
In conclusion, the difference between transactions of financial nature and recording in terms of money lies in their respective focus. The financial nature of transactions relates to the impact on the financial position of a business, while recording in terms of money refers to quantifying and expressing the value of transactions in monetary terms. Together, these principles ensure that accounting records accurately reflect the financial activities of a business and provide meaningful information for decision-making and financial analysis.