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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 is sundry debtor and sundry creditor?
If we provide some services to the vendors they are paying for our services therefore the person who are paying us becomes our sundry debtors.
Why does a record keeper prepare a trial balance?
A record keeper at the time of preparing trial balance balances(n totals) all the ledger a/c and transfer the balancing figure to the respective dr. and cr. columns of trail balance.
In this way he finds the accuracy as the totals of dr. and cr. columns are equal and if not then some error exists in recording or posting entries
When a purchase on account is made does the invoice becomes a debit or credit memo?
A debit to the vendor's subsidiary account.
Is interest income is debit or credit?
Interest income would be a credit entry, as it increases a form of revenue. If the interest income is received in cash, the entry would be:
Dr Cash
Cr Interest income
If the income was not yet received but will be at a later date, the entry would be:
Dr Interest receivable
Cr Interest income
In either case, the Interest income account would be credited.
Is note receivable is a credit or debit?
A note receivable would be set up when a company lends money to another entity with the promise to pay back the amount at a later date (and normally to make scheduled interest payments).
Since this account is an asset account, setting it up would be a Debit entry to the account. The entry would be:
Debit Notes receivable
Credit Cash
This represents an increase to notes receivable (an asset account), and a decrease to cash (also asset) reflecting the outflow of cash to the entity that is borrowing the funds.
What is the difference between Sundry debtors And Sundry Creditors?
Sundry Debtors are from whom we have to take money and to sundry creditors we owe money.
What account type is accounts payable?
Accounts payable is a liability account. When something is purchased on account it falls under this category such as purchasing $10,000 worth of office supplies on account. You would debit the office supplies account under assets and credit accounts payable under liabilities.
Were do put long term notes payable on the balance sheet?
Long term = non current
Payable = liability
Therefore, I would put it under the Non-Current Liabilities heading in the balance sheet.
It means that whatever you have ordered will not be posted until payment has been received and you have enough in your account to cover the cost.
What stockholder equity accounts follow the same debit and credit rules as liabilities?
Dividens retained earning and capital stock
What is created at the end of the year in the accounts payable department?
At Year End usually there is a balance sheet item called "Trade Creditors" or something similar, this should be documented with a complete list of outstanding invoices with payment due to you.
What if a company cannot convert inventory into cash within one year - is it still a current asset?
yes.
Is advertising expense debit or credit?
As the item says in itself it is an expense and therefore it should be debited.It is one of the rules of the accounts to debit all expenses and losses.
Why is Accounts payable considered a debit on trial balance?
It is NOT, accounts payable is never considered a debit on any financial statement. Accounts Payable is a liability that a company owes and therefore must maintain a "credit" balance.
