This means the receiving and the giving of equal value between two or more persons in the form of money or money's worth.
Example:
The effect of Transactions on the Account Equation.
- Owner Invested £4,000 Cash and started Business
- Bought a Motor Vehicle for £1,000 cash
- Bought Goods worth £2,500 on Credit from Jason
- Sold Goods worth £1,100 on Credit to Peter
- Deposited £500 Cash into Bank account
