reduceds
Owners Drawing account, which is owners equity and is debited. Cash, which is an asset and thats credited.
Debited.
[Debit] Truck account xxxx [Credit] Cash / bank xxxx
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.
debit a/r credit cash
Owners Drawing account, which is owners equity and is debited. Cash, which is an asset and thats credited.
Debited.
[Debit] Truck account xxxx [Credit] Cash / bank xxxx
A business pays its employees out of their profits. If a business isn't doing well, they usually lay off some of their employees.
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.
debit a/r credit cash
INCREASE
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 company pays an amount it owes to a creditor, it reduces its liabilities on the balance sheet by the payment amount, reflecting a decrease in accounts payable. Simultaneously, the company's cash or bank account is decreased by the same amount, indicating a cash outflow. This transaction updates the account ledger to maintain accurate financial records, ensuring that both the asset and liability sides of the balance sheet remain balanced.
[Debit] Equipment account [Credit] Cash / bank
[Debit] cash / bank [credit] accounts receivable
[Debit] cash / bank [credit] accounts receivable