Question

Distinguish between Cash and Credit transaction on the basis of:
(a) Meaning
(b) Time of payment

Hint:

Write a two-row table: meaning, and time of payment.

Answer 1

Step 1: Understand the question:
We need to distinguish between a cash transaction and a credit transaction on two bases: meaning and time of payment.
A good distinction is written in a table with one point for each basis.

Step 2: Basis (a): Meaning:
In a cash transaction, the buyer pays at the same time as the goods or services are bought or sold.
In a credit transaction, the goods or services are given now, and the buyer promises to pay later.

Step 3: Basis (b): Time of payment:
In cash dealing, payment is made on the spot, so there is no waiting.
In credit dealing, payment is made after a period fixed by agreement between buyer and seller, for example 30 days.

Step 4: Write the answer in table form:

Basis	Cash Transaction	Credit Transaction
Meaning	A transaction in which payment is made immediately at the time of purchase or sale of goods or services.	A transaction in which goods or services are bought or sold with a promise to make the payment at a later date.
Time of payment	Payment is made instantly, on the spot.	Payment is made after a certain period as agreed between the buyer and the seller.

Final Answer:
Cash and credit transactions differ in meaning and in time of payment, as shown in the table. \[ \boxed{\text{Cash: immediate payment; Credit: payment at a later date}} \]