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Accounts Payable is the amount which is payable by company for the merchandise purchased by company but payment is due in future, as it is the liability of company so like all liability accounts it has credit balance as normal balance.
Magali Rodriguez
Wiki User
∙ 10y agoAccounts Payable is the amount which is payable by company for the merchandise purchased by company but payment is due in future, as it is the liability of company so like all liability accounts it has credit balance as normal balance.
Wiki User
∙ 12y agoAccounts payable is a credit balance, because that is how much you owe to another company.
Accounts receivable (the amount you will receive from another company) is a debit balance.
Wiki User
∙ 15y agoAccounts Payable has a credit balance.
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A decrease to accounts payable is a debit or credit?
debit
What is the journl entry for puchasing goods on account?
[Debit] Purchases [Credit] Accounts payable
What are accounts payable entries?
[Debit] Accounts payable [Credit] Cash / bank
How do you write off accounts payable?
Debit Accounts Payable and Credit either the account where the original debit was made or Credit Other Income
What is the journal entry of credit purchase?
[Debit] Purchases account [Credit] Accounts Payable
Is Accounts Payable a debit or credit on the trial balance?
debit
Are accounts payable a credit or debit?
Accounts Payable is a Liability and therefore its normal balance is a Credit on the Balance Sheet
What is the debit and credit in made a payment on accounts payable?
account payable account debit to bank account
How do book an increase in notes payable?
When company purchases more goods on credit then it increases the accounts payable as goods will be debit and accounts payable will be credit.
Does a debit memo increase or decrease a accounts payable balance?
The accounts payable balance is a credit, so a debit to this account will decrease the balance.
Is Accounts Payable considered a debit on the Trial Balance?
No, it is a Credit because Accounts payable is a Liability account.
What is the journal entry when cheque issued to creditors is dishonoured?
[Debit] Bank account xxxx [Credit] Accounts payable account xxxx
