[Debit] cash / bank
[credit] accounts receivable
[Debit] cash / bank [credit] accounts receivable
(Debit) Cash xxxx (Credit) Accounts receivable xxxx
(debit) A account 500 (Credit) C account 500
[Debit] Utility bill account xxxx [Credit] Cash / bank account xxxx
[Debit] Equipment account [Credit] Cash / bank
Debit cash / bankCredit accounts receivable
[Debit] cash / bank [credit] accounts receivable
(Debit) Cash xxxx (Credit) Accounts receivable xxxx
(debit) A account 500 (Credit) C account 500
[Debit] Utility bill account xxxx [Credit] Cash / bank account xxxx
[Debit] Equipment account [Credit] Cash / bank
[Debit] Truck account xxxx [Credit] Cash / bank xxxx
When a customer pays their account, the account receivable department needs to put the amount of the payment into the computer. A receipt should also be sent to the customer.
The journal entry for payment made to a creditor typically involves debiting the accounts payable account to reduce the liability and crediting the cash account to reflect the outflow of cash. For example, if a company pays $1,000 to a creditor, the entry would be: Debit Accounts Payable $1,000 Credit Cash $1,000 This entry decreases both the company's liabilities and its cash balance.
When a customer pays on an account it needs to be documented immediately and if paying in person a receipt of payments needs to be given to the person who is paying.
The entry to record the payment of an account payable typically involves debiting the Accounts Payable account to decrease the liability and crediting the Cash account to reflect the outflow of cash. For example, if a company pays $1,000 to settle an account payable, the journal entry would be: Debit Accounts Payable $1,000 and Credit Cash $1,000. This entry reflects that the company has fulfilled its obligation, and cash has been reduced accordingly.
I'm not sure if I have the question correct. However, I will answer it with what I believe you are asking.If a customer pays a business money to be applied to their account the transaction in the journal is simple.Since you are receiving money (cash) you will debit cash for the amount of payment.Since the customer is paying on money they already owe on account you will credit their Account Receivable for the same amount.In other words, Bob owes Systems Inc. $5,000 and decides to pay $500 towards the accountCash (debit) $500 (this increases your cash by that amount)Account Rec.-Bob (credit) $500 (this will reduce the amount he owes the company)