Office supplies are considered an asset on a company's balance sheet. They are classified as current assets because they are expected to be used or consumed within a year. As supplies are used, their value diminishes, but they do not represent a liability or equity. Instead, they are part of the company's resources that contribute to its operations.
Office supplies acct is an account that you book as payables and a offfice supplies expense account is a Liability Account on your Chart of accounts
The journal entry for purchasing office supplies on credit involves debiting the Office Supplies account and crediting Accounts Payable. For example, if the office supplies cost $500, the entry would be: Debit Office Supplies $500 Credit Accounts Payable $500 This reflects the increase in assets (office supplies) and the corresponding liability (amount owed).
asset equity
asset equity
Office supplies are considered an asset on a company's balance sheet. They are classified as current assets because they are expected to be used or consumed within a year. As supplies are used, their value diminishes, but they do not represent a liability or equity. Instead, they are part of the company's resources that contribute to its operations.
Office supplies acct is an account that you book as payables and a offfice supplies expense account is a Liability Account on your Chart of accounts
The journal entry for purchasing office supplies on credit involves debiting the Office Supplies account and crediting Accounts Payable. For example, if the office supplies cost $500, the entry would be: Debit Office Supplies $500 Credit Accounts Payable $500 This reflects the increase in assets (office supplies) and the corresponding liability (amount owed).
equity
asset equity
The loan is considered a liability - The value of the company is the equity.
asset equity
asset liability
sales revenue is owner's equity
Profit is a part of owner's equity and actually increase the owner's equity that's why shown under owner's equity heading in liability side of balance shee.Owner's Equity xxxxadd:profit xxxx
As owners equity is likely to be paid back only at the closure of business entity, this is considered as special liability, the special being " liability to be paid at the end".
Equity.