 Welcome to Unit 8 of PRDV204 Payroll Applications. Up to this point, we have focused on payroll from a human resources perspective. But now we will be looking at it from an accounting standpoint. When executing the accounting part of payroll, it is important to properly identify, verify, record and report payroll transactions. Pay attention to the examples in this section. They will help you to understand the accounting equation Assets minus liabilities equals owner's equity and its relevance to payroll. This equation is most relevant when it comes to a cruel based accounting. Here, payroll departments must set aside an equal amount to what is withheld from their employees to avoid artificially inflating their equity. Good luck and I will see you at the beginning of Unit 9.