Cash Sales These occur when a customer buys items or services and pays immediately, at thepoint of sale. These occur frequently as seen in high street stores, whereindividuals go into stores to buy items and pay immediately by cash, cheque, debitor credit card at the till and are issued a receipt printed by a till … Read More

Accounting Equation: ASSETS – LIABILITIES = CAPITAL QUESTION: Anushka began a sole trade business on 1 January 20X1. During the first month of trading, the following transactions took place: She started the business with £5,000 of cashShe took out a loan from the bank of £10,000She purchased a van for £12,000 cashShe purchased 100 units … Read More

 WHAT IS A LIABILITY? Liabilities are things that are owed by the business which are the obligations or debts of the business. These could be classed as: ·        Non-Current liabilities ·        Current liabilities  Non-Current liabilities are obligations that are owed by the business over a long period of time usually for longer than one year … Read More