There are basically two types of transaction in accounting which are R Revenue transaction and capital transactions.
The transaction which is of short-term is considered as revenue transactions. These transactions generally are expected to benefit the current period. The revenue transaction is shown in profit and loss account while preparing a balance sheet.
- Sales of inventory and costs of inventory acquisition and/or creation
- Short-term receivables and payables
- Other monies received from other sources such as rents and dividends
The transaction which deals with the non-current assets and liabilities are considered as capital transactions.
- Purchase of a land
- Purchase of machinery