Question
Distinguish between economic transaction and Non-economic transaction.

Answer

No. Economic transaction Non-economic transaction
$1$ A transaction which can be measured in terms of money is known as an economic transaction. A transaction which cannot be measured in terms of money is known as non-economic transaction.
$2$ It is compulsory to record all economic transaction in the books of accounts. It is not required to record any of the non- economic transaction in the books of accounts.
$3$ Economic transactions includes cash and /or credit transactions. There is no question like cash or credit transaction for non-economic transaction.
$4$ Due to economic transactions there may arise debtor - creditor relationship. There is no question like debtor-creditor relationship in non-economic transaction.

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