diff --git a/bigchaindb/util.py b/bigchaindb/util.py
index 8492cc81..9e08b415 100644
--- a/bigchaindb/util.py
+++ b/bigchaindb/util.py
@@ -169,8 +169,8 @@ def create_tx(current_owners, new_owners, inputs, operation, payload=None):
     Reference:
         {
             "id": "<sha3 hash>",
-            "version": "transaction version number",
             "transaction": {
+                "version": "transaction version number",
                 "fulfillments": [
                         {
                             "current_owners": ["list of <pub-keys>"],
@@ -278,6 +278,7 @@ def create_tx(current_owners, new_owners, inputs, operation, payload=None):
             })
 
     tx = {
+        'version': 1,
         'fulfillments': fulfillments,
         'conditions': conditions,
         'operation': operation,
@@ -291,7 +292,6 @@ def create_tx(current_owners, new_owners, inputs, operation, payload=None):
     # create the transaction
     transaction = {
         'id': tx_hash,
-        'version': 1,
         'transaction': tx
     }
 
diff --git a/docs/source/topic-guides/models.md b/docs/source/topic-guides/models.md
index c130ce83..8e0add9d 100644
--- a/docs/source/topic-guides/models.md
+++ b/docs/source/topic-guides/models.md
@@ -58,8 +58,8 @@ Assets can be mutable (changeable) or immutable. To change a mutable asset, you
 ```json
 {
     "id": "<hash of transaction, excluding signatures (see explanation)>",
-    "version": "<version number of the transaction model>",
     "transaction": {
+        "version": "<version number of the transaction model>",
         "fulfillments": ["<list of fulfillments>"],
         "conditions": ["<list of conditions>"],
         "operation": "<string>",
@@ -75,8 +75,8 @@ Assets can be mutable (changeable) or immutable. To change a mutable asset, you
 Here's some explanation of the contents of a transaction:
 
 - `id`: The hash of everything inside the serialized `transaction` body (i.e. `fulfillments`, `conditions`, `operation`, `timestamp` and `data`; see below), with one wrinkle: for each fulfillment in `fulfillments`, `fulfillment` is set to `null`. The `id` is also the database primary key.
-- `version`: Version number of the transaction model, so that software can support different transaction models.
 - `transaction`:
+    - `version`: Version number of the transaction model, so that software can support different transaction models.
     - `fulfillments`: List of fulfillments. Each _fulfillment_ contains a pointer to an unspent asset
     and a _crypto fulfillment_ that satisfies a spending condition set on the unspent asset. A _fulfillment_
     is usually a signature proving the ownership of the asset.