by
Menerva Melad , Account Executive, Key Accounts , Graphic Home Company
Internal transactions are those transactions with which no outside person or organization is involved, it does not relates with two parties or not involve any other second party.
For e.g supplies used, prepaid expired, depreciation charged, bad debts on a/c receivable etc.
External Transaction are those transactions in which include two parties or it is the transaction between two parties. in organizations external transactions are mostly involved.
for e.g purchase of merchandise, sale of goods etc.
external transactions that occured between the firm and other firms so recording in journal is a mustbecause it affects on financial position
internal tranactions is that occured between the firm and itselfso if this tranaction included in disclusior and for controll
by
Ghulam Mustafa , Finance Manager , Al Hamli Group of Companies
The difference between an external and internal transaction is the people involved. In external transaction, people of a different region or outside the company are involved. In internal transaction, people of the same country or company transact.
