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Total Assets refers to total amount of Assets owned and controlled by an entity or a sole proprietor. These are shown on the B alance Sheet on asset side. Examples of total assets include Cash , Accounts Receivable , Inventory , Land & buildings, Plant & Machinery, Goodwill , Patents, etc. Total Assets include both Current Assets and N on Current Assets / Fixed Assets . Mathematically we can show it as: Total Assets = Current Assets + N on Current Assets As the sum of assets (Total Assets) are equal to the sum of Liabilities and Equity so these represent a part of Accounting Equation .

Cost Of Goods Available For Sale Definition And Meaning Cost of Goods Available for Sale is that cost of Inventory or Merchandise that is ready or available for sale to customers and it is obtained after adding inventory purchases to opening inventory. Mathematically, we can use the following cost of goods available formula or equation: Cost of Goods Available For Sale = Opening Inventory + Inventory Purchases For Example, if Opening Inventory is Rs. 50000, Inventory Purchases during the accounting period is Rs. 70000, then what is Cost of Goods Available for Sale? Calculation: We know that: Cost of Goods Available For Sale =  Beginning Inventory + Inventory Purchases B y putting the values, we get: 50000 + 70000 = Rs. 120000 It is to be noted that cost of goods available for sale does not include damaged or destroyed goods and such destroyed inventory are deducted from it in order to find out actual cost of go...

Paid On Account Journal Entries refers to those B usiness Transactions that take place on credit or these do not involve cash paid or received immediately. Such Journal Entries examples are shown below: 1. When Goods Purchased On Credit From Merchandising Company In that case, the Journal Entry is to debit the Purchases Account and credit the Accounts Payable Account as shown below:                                                         Purchases a/c  XXX                                                                               Accounts Payable a/c  XXX       ...

I n that case we are given the Cost of Goods Available for Sale , then we can find out the value of inventory purchases without ending inventory. We know that: Ope ning Inventory + Purchases = Cost of Goods Available for Sale   For Example, if we have opening inventory Rs. 5000, Cost of Goods Available for Sale = Rs. 2000, then what is Purchases ? Putting the value in the above formula, we get: 5000 + Purchases = 20000 Purchases = 20000 - 5000 = Rs. 15000   So , we can easily calculate purchases inventory without ending inventory from the above formula.

Net Purchases i n Accounting is calculated by deducting ( Contra Expense Accounts ) Purchases Returns , Purchases Allowances and Purchases Discounts from Gross or Total Purchases that is a N et Purchases Formula. Mathematically, we can write as shown below: N et Purchases = Gross Purchases - (Purchases Returns + Purchases Allowances + Purchases Discounts) Net Purchases is recorded o n the Income Statement or Profit & Loss Account for the accounting period.

Ope ning or Begi nning Inventory plus Net Purchases is equal to the Cost of Goods Available for Sale as it is the cost of goods available for sale purposes and it does n't include damaged or destroyed goods. The remaining goods that are not sold during the accounting cycle are called closing inventory. B asically, cost of goods available for sale formula is the part of Cost of Goods Sold Or Cost of Sales formula that is shown below:                                                                       Rs. Opening Inventory                                       XXX Add: Purchases                        ...

The main or primary difference between Purchase Invoice and Sales Invoice is that purchase invoice is issued by the purchaser / buyer whereas the sales invoice is issued by the seller. Purchase invoice shows that goods / products or services which are purchased by the buyer from seller / supplier for an agreed amount on a particular date payable for a specified time period to the supplier while sales invoice indicates that Credit Sales has been made between seller and buyer for specified goods / products or services for an agreed price. A Purchase I nvoice is issued from buyer or purchaser to seller / supplier or vendor containing lists of prices, quantities of goods, etc while a Sales invoice , containing price lists. number of quantities ordered, etc, is issued by the supplier to customers informing him about the completion of the order according to the purchase invoice sent to him from buyer. Purchase invoice is the confirmation...