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Generally speaking, no. A payable account is a liability account where the company owes something. If you have a payable on your books it's something you "owe" another person/company. Prepayment refers to something that is "prepaid" or paid before hand. Prepaid accounts are generally considered "assets" on your books. For example "Prepaid Insurance" would be listed in your assets.
If your company prepays for something, you list it on your books as an asset of some form. If you ordered computers from another company and prepay for receiving them, your books will list this transaction as an account receivable, which is an asset account because now the company you paid the computers for "owes you" and it will be an asset on your account.
Now if we reverse this transaction and a company pays your company for computers that it has not received yet, then it becomes a liability on your account (i.e. account payable) because you now owe that company something.
Therefore a payable account of any kind can not be listed as a prepayment.
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How do you recognize account payable?
Account payable is an account that is a Liability (current). When a person or company owes another company money on account, that is an account payable.
What is the debit and credit in made a payment on accounts payable?
account payable account debit to bank account
What type of account is an accounts payable?
An accounts payable is a "Liability" account. Payable being the "key" word, meaning something you have to "Pay" or "Owe".
Is account payable asset or liability?
accounts payable is a liablity.
What is Accounts Payable the compliance?
account payable is the liability of creditor.
What is the journal for prepayment?
First debit prepayment account then credit cash/bank or supplier account.( Total prepayment amount) Second Debit relevant expenditure account by the portion its reflected to generate the revenue and credit same to the Prepayment Account Thanks Prasanna MMM Colombo
How do you recognize account payable?
Account payable is an account that is a Liability (current). When a person or company owes another company money on account, that is an account payable.
What happens to my financial statement if I don't record a prepayment?
The assets in the balance sheet will be understated as prepayment is under the assets account.
What are the procedures account payable?
acoounting payable
What is the debit and credit in made a payment on accounts payable?
account payable account debit to bank account
What type of account is an accounts payable?
An accounts payable is a "Liability" account. Payable being the "key" word, meaning something you have to "Pay" or "Owe".
Is account payable asset or liability?
accounts payable is a liablity.
What is Accounts Payable the compliance?
account payable is the liability of creditor.
What are Accounts Payable and Notes Payable?
Accounts payable are the amounts owed to a supplier that the buyer holds an account with. Notes payable is the amount owed to creditors, that is, suppliers that the buyer does not hold an account with.
If the accounts payable account balance increase on the trial balance?
account payable increase on trial balance
What is the normal balance of a bonds payable account?
Normal balance of bonds payable account is credit account and it is shown under liability side of balance sheet because these are the amounts payable in future.
Difference between account payable and bills payable?
Accounts Payable releted to Creditors and Bills payable releted to bank.
