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What document is prepared to reduce account payable for something other than a payment to vendor?
Wiki User
∙ 11y ago
debit memo
Wiki User
∙ 11y ago
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How are a schedule of accounts payable prepared?
An accounts payable is a "Liability" account. Payable being the "key" word, meaning something you have to "Pay" or "Owe". ALL payable accounts are liabilities no matter what they are for. Whether it is a bill payable, mortgage payable, note payable, wages payable, etc, they are all listed as a liability. Rahul
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".
What account type is accounts payable?
Accounts payable is a liability account. When something is purchased on account it falls under this category such as purchasing $10,000 worth of office supplies on account. You would debit the office supplies account under assets and credit accounts payable under liabilities.
What type of account is bills payable account?
ALL payable accounts are liabilities no matter what they are for. Whether it is a bill payable, mortgage payable, note payable, wages payable, etc, they are all listed as a liability. This is because a "payable" is something you (your company) owes but has not paid yet. For a bill such as Phone, once the obligation is met it is no longer a liability but an expense.
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 document is prepared to reduce accounts payable for something other than a payment?
debit memo
How are a schedule of accounts payable prepared?
An accounts payable is a "Liability" account. Payable being the "key" word, meaning something you have to "Pay" or "Owe". ALL payable accounts are liabilities no matter what they are for. Whether it is a bill payable, mortgage payable, note payable, wages payable, etc, they are all listed as a liability. Rahul
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".
What account type is accounts payable?
Accounts payable is a liability account. When something is purchased on account it falls under this category such as purchasing $10,000 worth of office supplies on account. You would debit the office supplies account under assets and credit accounts payable under liabilities.
What type of account is bills payable account?
ALL payable accounts are liabilities no matter what they are for. Whether it is a bill payable, mortgage payable, note payable, wages payable, etc, they are all listed as a liability. This is because a "payable" is something you (your company) owes but has not paid yet. For a bill such as Phone, once the obligation is met it is no longer a liability but an expense.
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 a payable is paid is it a debit or credit?
I am assuming you meant "when" a payable is paid?A "payable" is a liability to the company, it is something they owe. For example, Account Payable. Liabilities maintain a credit balance, meaning they increase with a credit and decrease with a debit.In short, when you "pay" the payable, you are decreasing what you owe by the amount paid and therefor will "debit" the payable account.
Can you have a payable account as a prepayment?
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.
Why increase in account payable is a source of funds?
An increase in Accounts Payable means that the company has received more invoices that are due for payment. account payable increase on trial balance.When an item is purchased on credit accounts payable increases. For example if you purchase something for $250 on credit this is the entry to increase accounts payable. Purchases 250 Accounts Payable.
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
On a trial balance what is the accounts payable?
An account payable is something the company owes but has yet to pay. All payable accounts are listed as liabilities on the books (including the Trial Balance Sheet) until they are paid.
