Transaction

Meaning :

A transaction is any activity where money is exchanged for goods, services, or value. It involves two sides: a payer (the one who pays) and a receiver (the one who gets

paid). Transactions can be made with cash, digitally, or even with credit.

Example : 

For instance, paying ₹200 using UPI to buy groceries is an example of a  transaction.

How to Understand : 

A transaction is simply the movement of money from one person or account to another.

It is recorded as:

•Debit: money going out

•Credit: money coming in

Every financial activity—like shopping, paying bills, or sending money—is a transaction.

Importance :

Transactions form the base of all economic and business activities, helping things run smoothly.

They help track spending and income, making it easier to manage money.

Transactions are required in accounting and financial records to keep everything organized.

They make digital payments possible, allowing for quick and easy transactions.

Transactions ensure accountability and transparency in financial dealings.