Meaning of Business Event

Business event is the event which is liability for change the financial position of business. First business event is happened by business owner when he invested his money in business as capital. Then, he purchases goods, then he does other operating day to day expenses. Then, he bought fixed assets for long term profit. So, all most business transactions are business events.

 Business events may be affected outside or not affected outside. But, it will change the financial position of business, so, we will pass the journal entries.

1. Business Event which are not Affected Second Party

a) Depreciation
b)  Normal Spoilage of Inventory due to nature


1. Business Event which are Affected Second Party or Main Business Transactions 

a) Purchase of goods.
b) Sale of goods
c) Provide services to other party and earn money
d) Paid expenses to other party for obtained services.
e) Taken loan from bank
f) Bought machine, furniture, equipment
g) Invested money by new partner
h) bought goods on credit
i) Sold goods to customer on credit
j) Paid interest on loan
k) Use goods for personal use