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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 if packing slip shows a shortage what should account payable do?
If the packing slip shows a shortage, the Accounts Payable department should send it back.
The Accounts Payable clerk is responsible for providing payment on an account.
Is a contra account balance a debit or credit?
A contra account balance is a debit balance account. It is a general ledger account that has a balance that is an exact opposite of a normal balance. Contra accounts are generally used to report the gross and the net amount of an organization.
The area of accounting that describes the application of substance over form is Financial non-current asset.
Is notes payable a permanent account?
Any account on the balance sheet is a permanent account - 'Cash', 'Accounts Receivable', 'Accounts Payable'.
Income and expense accounts are temporary accounts because they are closed at the end of an accounting period. Examples are: 'Service Revenue', 'Office Expense', and, my personal favourite, 'Meetings and Entertainment Expense'.
Currents assets are assets that can quickly be turned into cash, therefore account receivable is because debtors can pay off their debt or the company can factor it and Property and equipment are difficult to turn into cash as you first have to find the suitable buyer and reconsider for sales
What is the accounting entry for revenue earned by the business?
it is usually a fee of around 1500 pounds to 2000 pounds.
Why do amount of vehicles appear in non-current assets and current assets?
Vehicle is a fixed asset so it should be shown in fixed asset list and not in current asset list.
What is accounts payable balance sheet?
Accounts payable on the balance sheet is the amount of money the company owes its vendors from invoices the company has received from them (and assuming the company agrees they owe the money)
What side of trial balance does 5 debentures go on?
In a trial balance, debentures are classified as a liability. Therefore, they are recorded on the credit side of the trial balance. This reflects the company's obligation to pay back the amount borrowed through the debentures.
What is the journal entry of accounts payable?
debit purchases
credit accounts payable
*For purchases (supplies, office materials, etc.) on account
Purchases xx
Accounts Payable xx
*During payment of purchases on account
Accounts Payable xx
Purchases xx
NOTE: Journal entries depends on the accounts involved, like: Taxes, discounts and other stuffs. ^^
When an interest-bearing note matures the balance in the Notes Payable account is?
The principal or maturity value. The premium or discount should be fully amortized down to zero.
Two people should sign a completed petty cash voucher who?
Two people should sign a completed petty cash voucher if they are removing funds from a mutually protected petty cash supply for which they are both in charge. This will enable both parties to be responsible for one another during the transaction.
How to maintain petty cash book?
Maintaining a petty cash book can be simple as long as a person makes sure to keep up on transactions regularly. Most petty cash books are maintained by listing receipts and their purchase purpose along with the date and a brief explanation.
Is Cash and balances with central banks current assets or non current assets?
Cash and balances are both current assets and shown in current section of balance sheet.
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 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 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.
