Transactional Analysis Explained Quick and Easy


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Most organizations must gather an enormous quantity of information as a prerequisite for preparing financial statements periodically. This process begins with an analysis of the impact of each transaction (financial event). After the effect on all account balances is ascertained, the recording of a transaction is relatively straightforward. The changes caused by most transactions—the purchase of inventory or the signing of a note, for example—can be determined quickly. For accrued expenses, such as salary or rent that grow over time, the accounting system can record the amounts gradually as incurred or only at the point of payment. However, the figures to be reported are not impacted by the specific mechanical steps that are taken.

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Almost everyone knows how to ‘win’ by playing games, beating others and creating a ‘win-lose’ situation, but making sure that both of you ‘win’ is much harder. Financial Accounting Copyright © 2015 by University of Minnesota transaction-analysis is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. We want to make sure that all of our readers get their questions answered.

The transaction to the right shows a Parent – Child transaction, with the Child ego state providing the transactional stimulus, and the Adult responding with the transactional response. According to Dr. Berne, the simplest transactions are between Adults ego states. For example, a surgeon will survey the patient, and based upon the data before him/her, his/her Adult decides that the scalpel is the next instrument required.


Transactional analysis is used in many different fields, in addition to psychotherapy, including business management, education, and medicine. It is considered a highly effective method to enhance self-awareness and the ability to relate to others. All of the items listed are owned or controlled by the company to bring future benefit and thus qualify as assets. Stockholders equity represents the ownership of the business and is not an asset.

When communication occurs in the adult state, we are more likely to be respectful, make compromises, listen fully to others, and have more healthy social interactions. This can then unconsciously cause us to replay the same attitudes and behaviors that our parents had towards us to someone else during a conversation or to respond to communication and interactions with past childhood anxieties and emotions. In the same way, Berne believed that our childhood experiences, particularly how we are parented, affect the developmental formation of our three ego states (Parent, Adult, and Child). Transactional analysts are trained to recognize which ego states people are transacting from and to follow the transactional sequences to intervene and improve communication quality and effectiveness. Harris believes that from a very early age, a child accepts the position that their parents are ‘OK’. Parents spend a lot of time telling children not to do things, as a normal part of helping them grow up into a civilised and functioning adult.

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