0
Accounts Payable
Sometimes referred to as trade payables, accounts payable is an account sub-ledger that records all the amounts that a company or a person owes to suppliers but has not paid yet.
3,095 Questions
What is the journal entry for redemption of debentures which were issued at discount?
debit redemption of debentures account
credit cash / bank
Is wages and salaries expenses on a normal balance account considered a debit or credit?
Wages and salaries both are expenses to the company and like all expenses normal debit balance these accounts also have debit balance as their normal balance.
What do you mean by assets fixed assets and current assets?
Assets:
Assets are those items which are utilized by company to earn profit in business cycle.
Fixed Assets:
Fixed assets are those items the benefits of which have been taken by company for more than one fiscal year like land, building, machinery etc.
Current Assets:
Current assets are those assets the benefit of which is received or receivable by company in only one fiscal year to earn profit like, cash in hand, marketable securities, inventory, debtors etc.
What are advantages to creditors in case of note receivable than an ordinary account receivable?
Notes Receivable is a written agreement to pay at stated date and it is beneficial for company as if company required money before the actual date of then company can sell or give that notes to third party for collection at specified date and can receive money immediately from that third party for utilizing in business while under actual accounts receivable situation company has to wait till specified period of time to collect money from debtors.
What is the journal entry for the cash stolen from cash box?
Debit: Profit & Loss Account
Credit: Cash In Hand or Petty Cash
Nature of Debit is Expense and the nature of Credit is Asset.
Expense Increased and Asset Decreased
If you have an account already open for such Losses then you should debit such account. For example in my company Cash loss is usual Case so we have an Account titled "Cash Lost Expense"
In my cash I will pass the entry as
Debit: Cash Lost Expense
Credit: Cash in Hand or Petty Cash
The best way to explain this is by example:
Wells fargo Bank has your bank account. Your account is a liability for them since this is not truly their money and it is obligated to you the account holder......so when they increase your account, they post a credit to it. Because to increase their liabilities they have to credit it......and when you use your debit card and decrease your account then wells fargo debits your account to remove the money.
For you as the account holder your checking account is your asset......so if you were tracking your accounting in a program.....and you wanted to show where you deposited money into your account in your system then you would post a debit to increase your cash account.
What is stretching account payable?
Stretching accounts payable has to do with making payments. When a company makes the payment after the due date, yet only pays what is due, not any penalties. This is stretching accounts payable.
Does debit always mean an increase?
Incase of expenses and assets accounts debit means increase while for income and liabilities accounts debit means decrease.
What does the term account payable mean?
In private homes, accounts payable refer most often to bills for services like electricity, phone or newspaper. Accounts paypal for companies indicates money that needs to be paid to suppliers.
Where could one find an Accounts Payable Manager job?
There are a number of resources that one can use to find an Accounts Payable Manager job. For example, Workopolis, Career Builder, and the Accounts Payable Network all have information about Accounts Payable Manager jobs.
What is a debit note and what is it used for?
A debit note is a document that is used by a buyer to inform the company of the quality of goods and price of the goods that are being returned. Debit note is also known as a debit memo.
Where can someone find samples of invoices?
Quickbooks offers free invoice templates. Microsoft Publisher has several base invoices to create whatever is needed by their customers. Office Depot also has this product.
What the difference between prepaid and accrued expense and accounts payable?
1. Prepaid Expenses:
These are those expenses, the payment of which has made by company in advance but the benefit or actual services has not yet received by the company that's why it is current asset of company for example prepaid rent.
Accrued Expenses:
These are those expenses the benefit of which has already received by company but payment has not yet made example is employees salaries which are accrued on last date of month and paid later.
Accounts Payable:
When company purchased goods from vendors on credit and payment is due in later time period this transaction creates the accounts payable till the actual payment is made to the vendors.
Why drawing is recorded in debit side of accounting?
If you're drawing funds from an account - it is a debit action.
Why notes payable instead of accounts payable?
Notes Payable is used to show that it's a note. A note is determined by the signing of a Promissory Note or some similar contract. For example, when you purchase a vehicle (unless you are purchasing said vehicle with cash) you sign a contract (Promissory Note) in which you pay X amount by a certain day each month.
What is the normal account balance for the accounts payable ledger account?
1. As accounts payable is the liability of the company to be paid in future so in this way like all other liabilities accounts balance, accounts payable has also credit balance.
What is the journal entry customer goods returned on credit?
debit goods returned
credit accounts receivable
Why do accounts payable ledger require a subsidiary account?
As in business company purchases materials or goods from different vendors on advance same like sales to different clients on advance, so if all clients balance is transferred to one accounts payable account then it will be impossible to keep track of saperate payments to different vendors that;s why separate accounts are maintained.
What will be the journal entry if the invoice is received from supplier?
There is no entry for receiving invoice from suppliers rather entry is made when goods purchased from suppliers.
What is the T account for Journal entry for Machinery purchased on cash?
find out the accounts involed in eash of the following cases
Q:- machinery purchased for cash.
Q:- furniture is purchased on cresit
