answersLogoWhite

0

Decreases to liability accounts are recorded on the credit side by crediting the account to reduce the balance. This helps to accurately reflect the decrease in the amount owed by the company.

User Avatar

AnswerBot

5mo ago

What else can I help you with?

Related Questions

Does a Credit to a liability account increases or decreases?

It increases the credit account


What is the normal balance for accounts payable?

Accounts payable is a liability account and all liability accounts have credit balance as normal balance so accounts payable is also credit as a normal balance


How do you increase a liability?

A liability account is a credit account, and credit accounts can be increased by writing a credit in the journal entry. Therefore, a liability is increased by crediting it.


How are liabilities affected by debits and credits in accounting?

In accounting, liabilities are affected by debits and credits based on the type of transaction. When a liability increases, it is recorded as a credit, and when a liability decreases, it is recorded as a debit. This helps maintain the balance in the accounting equation.


If payment on a current liability?

Payment On Current Liability Debit The Current Liability (say Sundry Creditor) (Liability Decreases) Credit Cash Or Bank (Current Asset Decreases)


Does accrued salaries have a debit or credit balance?

Credit; liability accounts are always credit


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 purchase of equipment on credit recorded by?

A debit to equipment and a credit to liability


Is accounts payable a debit or credit?

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.


What is normal balance of liability accounts?

Liabilities are typically credit balances


Is Accounts Payable considered a debit on the Trial Balance?

No, it is a Credit because Accounts payable is a Liability account.


What kind of an account (asset liability etc.) is Allowance for Doubtful Accounts and is its normal balance a debit or a credit?

What kind of an account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?