In case there are several transactions between two parties, it will be necessary to take into account the question of interest besides ensuring the correctness of amount due by one party to the other. It will be appropriate in such a case that each party should send a statement of account to the other party instead of settling each transaction individualty. Such a statement when rendered in the form of an account by one party to another, duly setting out in chronological order the details of the transactions together with interest, is termed as an Account Current. The main heading of the account is preceded by the name of the party to whom it is rendered and is succeeded by the name of the party sending the statement. For example, if A sends an account current to B, the heading of the account current will be:

B in account  current with A In case the account current is being sent by B to A, the heading of the account current will be A in account current with B

Account current is sent by one person to another in case of following types of relationship:

(a) Principal and Agent, (b) Consignor and Consignee, (c) Supplier of goods and Customer, (d) Co-venturers.