Difference between cash and credit transactions

The difference between cash and credit transactions is fairly straight forward:

• In a cash transaction payment is made straight away - with a cash transaction there will be two entries in the double entry accounts (one credit and one debit - this is usually referred to as one double entry transaction.)
• In a credit transaction payment is made at a later date - with a credit transaction there will be four entries in the double entry accounts (one credit and one debit to record the initial transaction and another credit and debit once payment has been made - this is usually referred to as two double entry transactions.)