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On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This is
- a)An event
- b)A transaction
- c)A transaction as well as an event
- d)Neither a transaction nor an event
Correct answer is option 'A'. Can you explain this answer?
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On March 31, 2015 after sale of goods worth Rs.50,000, he is left with...
Event vs Transaction in Accounting
Introduction
In accounting, events and transactions are two important concepts that help in determining the financial position of a business. While both of them are related to the exchange of goods and services, there are some key differences between them. In this answer, we will discuss the difference between an event and a transaction in accounting.
Event
An event refers to any happening that affects the financial position of a business but does not involve any exchange of goods or services. For example, a fire in the factory, a change in government regulations, or a natural disaster are all events that can impact a business's financial position. In the context of the question, the closing inventory of Rs. 20,000 is an event because it is a result of the sale of goods worth Rs. 50,000 but does not involve any exchange of goods or services.
Transaction
A transaction, on the other hand, is an exchange of goods or services between two parties that results in a change in the financial position of a business. For example, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money and results in an increase in the business's cash balance. In the context of the question, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money.
Conclusion
In conclusion, the closing inventory of Rs. 20,000 is an event because it is a result of the sale of goods worth Rs. 50,000 and does not involve any exchange of goods or services. On the other hand, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money and results in a change in the financial position of the business.
Introduction
In accounting, events and transactions are two important concepts that help in determining the financial position of a business. While both of them are related to the exchange of goods and services, there are some key differences between them. In this answer, we will discuss the difference between an event and a transaction in accounting.
Event
An event refers to any happening that affects the financial position of a business but does not involve any exchange of goods or services. For example, a fire in the factory, a change in government regulations, or a natural disaster are all events that can impact a business's financial position. In the context of the question, the closing inventory of Rs. 20,000 is an event because it is a result of the sale of goods worth Rs. 50,000 but does not involve any exchange of goods or services.
Transaction
A transaction, on the other hand, is an exchange of goods or services between two parties that results in a change in the financial position of a business. For example, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money and results in an increase in the business's cash balance. In the context of the question, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money.
Conclusion
In conclusion, the closing inventory of Rs. 20,000 is an event because it is a result of the sale of goods worth Rs. 50,000 and does not involve any exchange of goods or services. On the other hand, the sale of goods worth Rs. 50,000 is a transaction because it involves an exchange of goods for money and results in a change in the financial position of the business.
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Community Answer
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with...
Transaction denotes with a business performance of an act, an agreement, while event is used to mean a happening, as a consequence of a transaction, a result. Events are the end results of transactions. Therefore, Stock left at close of year ,after all transaction s is an event.
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On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer?
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On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer?.
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This isa)An eventb)A transactionc)A transaction as well as an eventd)Neither a transaction nor an eventCorrect answer is option 'A'. Can you explain this answer?.
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