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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
Can how you make journal entry of petty cash expenses in F7 tally 9?
You can do this through Excel. Just put in the petty cash information how it is and the button will help take care of the rest.
What does in mean when long term liabilities is less than current liabilities?
It means that the business is conducted out of short term cash. Hence small changes in the environment can affect the cash flow.
Are accounts payable accounts that you expect will be paid to you?
are accounts payable accounts that expect will be paid to u
Is trade in allowance a liability or a current asset?
trade in allowance is considered as acurent asset.
it can be explianed and understood with help of following example .
a firm has exchange a used ( 2nd hand ) machine for a new one. the worth of new machine has 20000. while the book value of old machine was 10000 but it was traded for worth of 12000, so it saved two 2000 cash , which is an asset.
New machine 20000(Dr)
Old machine 10000(Cr)
Trade in allowance 2000(Cr)
cash 8000(Cr)
What is the debit and credit in made a payment on accounts payable?
account payable account debit to bank account
What are the reasons for charging depreciation on non current assets?
depreciation non current asseate
What are the accounting principles that must be obserb in a accounting?
source : "Ultimate book of accountancy"
Ans: Main concepts of accounting are
(1) Business entity concept (2) Money Measurement concept (3) Cash and
Accrual Concept (4) Prudence concept (5) Cost concept (6) Matching Concept
For more detail.... see... "ULTIMATE BOOK OF ACCOUNTANCY" Published by vishvas publications ... vishvasbook@yahoo.com
Is accrued interest payable a current liability?
For general purposes, accrued interest payable is generally a current liability, however that depends on one major factor. When will the liability be paid? Any liability that a company can reasonably expect to pay off in 12 months (or less) or one accounting period is a "current liability" any liability that will be paid off at a longer time is a "long term liability"
So if the accrued interest will be paid in 12 months or less, then it is a current liability.
What does payment term of 2 percent tenth Net 25TH mean?
This term is similar to the normal terms (i.e. 2n10 net30) This term however just specifies a date. It means that if the company/person pays by the 10th of the month they can take a 2% discount, with the full balance (net) due by the 25th (with no discount).
Company's offer this kind of savings to help entice the buyer to pay off their account early. Although 2 percent doesn't sound like a lot, when dealing with thousands of dollars at a time 2 percent can add up to a huge savings for the purchasing company.
2n10 net30 is 2 percent discount if paid within 10 days of the invoice date, with the net being due 30 days after invoice date.
A check in most accounting is considered the same as cash and therefore it is treated the same.
A debit to the cash account will be made to note payment of the account and a credit to the appropriate account payable account to bring the AP down to a zero balance.
The check will then be deposited with the normal bank transactions and recorded as such in the bank statements for the company.
Are accounts receivable a debit or credit?
Accounts receivable is a debit.
Answer:
Accounts receivable is an asset and therefore maintains a debit balance. This is an account listing what a person or company owes you, or money that you expect to receive. Since it is an asset (all assets maintain a debit balance) it means to increase the account you debit it and to decrease it (when a payment is made by the customer) you credit it.
Assets = debit balance (increase with debit, decrease with credit)
Liabilities and Owners Equity = credit balance (increase with a credit, decrease with a debit)
(GAAP)
How do you journal entry prepay account?
Dr: Prepayment to Suppliers
(In Case of Expense, then "Prepaid expense" account will be debited e:g Prepaid Rent)
Cr: Bank/Cash
What if you paid some money on past due?
You could pay the rest a little later, and then you're all caught up.
6875 paid for five months so one month rent = 6875/5 = 1375
General entry is as follows
November 1, 2008 [Debit] Prepaid Rent 6875
[Credit] Cash 6875
December 31, 2008 [Debit] Rent Expense 1375
[Credit]Prepaid Rent 1375
Can closing stock be credited to the trial balance?
Yes if the closing stock is given in trial balance it is shown in Assesst side of Balance Sheet, while if closing stock is given in'Adjustments' then it is shown in credit side of Trading a/c as well Asset side of balance sheet
What are the 7 non current liabilities?
Equity shares, debenture, secured loan, non secured loan, borrowings, reserves , retained earnings
