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Previously we studied about Difference Between Liabilities And Owner's Equity , but here we study about the similarities between these two Accounting Terms. 1. Liabilities and Owner’s Equity are the debts payable by the business either to outsiders or owners. 2. All the resources (Assets) of the business are the results of Liabilities and Equity. Both Liabilities and Equity Completes the Accounting Equation . 3. Business needs funds from time to time to run properly and both liabilities and equity are the sources of finance for the business to run the business in working condition. For Example, accounts payable are incurred to purchase goods from suppliers and ultimately business sells goods and get return on sales. Such Revenue helps in efficient flowing of the business and provides funds for meeting daily expenses and for effectively carrying out the business. Capital invested in the business or shares issued in case...

Here we study about the Cash And Credit Purchases Accounting Journal Entries with the help of Simple Examples. You may also be interested in Cash Sales Journal Entry With Example As we know that, Purchases is related to those Goods that are purchased by the business for resale purposes. Goods can be purchased for Cash or On Account. So, basically there two kinds of Purchases: 1. Cash Purchases 2. Credit Purchases 1. Cash Purchases Goods Purchased by the business for Cash are known as Cash Purchases. Cash Purchases Journal Entry With Example For Example, if the company purchased goods worth Rs. 50000 From Mr. (Supplier) For Cash, then it is recorded in the Accounting Journal of the company as: Purchases a/c 5000                            Cash a/c 50000 (Goods Worth Rs. 50000 Purchased From Mr. For Cash) 2. Credi...

Here we study about Cash Sales Journal Entry With Example. You may also be interested in Sales Discount Journal Entry . Cash Sales includes those business transactions that include Cash and not recorded on Credit basis and hence there is not involvement of Accounts Receivable or Debtors . Instead, we are considering only Cash Transactions. There are two Accounting Systems for Recording Business Transactions . 1. Cash Basis of Accounting and 2. Accrual Basis of Accounting You may also be interested in Accrual VS Cash Basis of Accounting Cash Sales Journal Entry follows Cash Basis of Accounting rather than Accrual Basis of Accounting . When goods are sold for Cash, then Cash Sales Transactions are recorded. In this Case, in Journal , Cash is Debited as Cash increased And Sales is Credited as Sales increased from the point of view of our business. We Record the following Business Transaction in the Book or Journal of the C...