Question
Distinguish between cash and credit transaction.
| No. | Cash transaction | Credit transaction |
| $1$ | When cash is received or paid in exchange of goods, assets or services then it is known as cash transaction. | When cash is to be received or paid in future in exchange of goods, assets or services then it is known as credit transactions. |
| $2$ | There is no question of debtor-creditor relationship due to cash transaction. | Due to credit transactions debtor- creditor relationship arise. |
| $3$ | Name of the person is not necessary to be mentioned in a cash transaction. | It is compulsory to mention name of the party concern in a credit transaction. |
| $4$ | Cash discount is calculated for a cash transaction. | There is no need for calculation of cash discount for credit transaction. |
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