Lots of events happen in a business organization but all events are not transactions. It is known to all, "All transactions are events but all events are not transactions." What is Event? Event is such a thing that happens in a business organization in a thousand times. But all events would not be important in respect to business life. In the viewpoint of recording transactions, only a little event will be considered as a transaction. Then what is the transaction? Generally, give and take of any goods or services in respect of money or money measurement will be considered as a transaction. But in modern terms events to be taken into account as transactions whenever it changes in the financial position of a person or an organization and also changes in Asset, Liability, and Owner's Equity of a business Instution. However, to identify a business transaction, we have to follow the following three ways spontaneously. ⇒ (1)Traditional Method- Based on features or