Difference Between Purchases Account And Office Supplies

Goods Purchased is called Purchases which may be for Cash or On Account while office supplies are used in the office of the business during the daily operations of the business. Examples include Stationary which include Pencils, Pens, Inkport, print paper, office equipment such as computers & laptops, printers, office furniture such as Tables, chairs, etc.

Purchases are recorded on Income Statement or Trading Account as a Direct Expense while Office Suppliers are considered as either Expenses like Stationary & Printing, etc., Current Assets or Non Current Assets / Fixed Assets like office equipment, if using within one year or more than one year, on the Financial Statements.