Which of the following events represent business transaction:

Machinery is purchased for cash

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Goods are ordered for delivery next month

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The owner of the firm dies

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An employee is dismissed from his job

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Solution

The correct option is A
Machinery is purchased for cash

All of the above events effect the business but only purchase of machinery for cash brings change in the accounts balances.Therefore, it is a business transaction which shall be recorded in the books.

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