the comapny purchase or sells the goods either cash basis 
or credit basis. If the comaany purchase the goods on 
credit basis the account payable  will araise. Account 
payable is aliablity . when the company pay that amount it 
will be deducted from the account payable account. account 
receivable is an asset of the company .if the company sell 
the goods on acredit basis to customer  the amount will be 
transfered to account receivable account .

Accounts payable are amounts a company owes because it 
purchased goods or services on credit from a supplier or 
vendor. Accounts receivable are amounts a company has a 
right to collect because it sold goods or services on 
credit to a customer. Accounts payable are liabilities. 
Accounts receivable are assets.

Let’s assume that Company A sells merchandise to Company B 
on credit. (Perhaps the invoice states that the amount is 
due in 30 days.) Company A will record a sale and will also 
record an account receivable. Company B will record the 
purchase (perhaps as inventory) and will also record an 
account payable.

Our example reminds me of an old saying, “There are two 
sides to every transaction.” In accounting we also expect 
symmetry: Company A has a sale and a receivable, Company B 
has a purchase and a payable.