00:01
Okay, so let's understand the solution.
00:04
First of all, we will begin with the five type of accounts that that will be applicable throughout the accounting.
00:11
Okay.
00:16
First is assets.
00:21
The assets are recoverable amounts.
00:35
Let's suppose you have a business and you have sold some goods or services to your customer.
00:42
But the customer is saying right now that he will be paying after a certain period of time.
00:46
Let's just around 30 days.
00:50
So that amount will become automatically recoverable.
00:53
Okay, after the, after the certain period of time.
00:56
So that amount will be included in assets.
01:03
Cash and bank balance.
01:08
If you will receive that amount from your customer.
01:11
So that so you will be maintaining that cash balance at your entity in your cash drawer or any type of locker.
01:20
So that will also become your asset.
01:22
It's inventory however in traditional terms we used to term or we use to know supplies as inventory and inventory is nothing but the material you have purchased from your supplier for further processing off for further processing into finished goods so that you can sold you can sell those finished goods to your customer okay let's come to liabilities, liabilities are mostly in contrast of assets, payable amount.
02:13
So as just we have discussed inventory, like suppose you have purchased some inventory from your supplier, but you have not paid for them.
02:23
So that amount becomes payable.
02:25
Okay.
02:26
If that amount becomes payable, so that is considered as your liability...