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hi everyone welcome back to sahab academy today in this video we are going to understand what do you mean by receivables and payables in accounting what is the difference between these two and how do we treat them in the books of accounts okay so lets start the video and lets understand that now first lets take this beautiful example to understand the concept of receivables and payables believe me its really simple lets say for example you have a pharmacy business and whatever im going to say right now please think this from the point of view of pharmacy only okay from the business point of view all right so lets start so now whats happening over here is first thing is you have made a credit purchase from your supplier so what does that mean credit purchase see credit purchase is also known as purchasing on account so we also dont know that so its really simple you have purchased supplies medicines from your supplier in this box but you did not pay anything to your supplier y
