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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 debtors and sundry creditors?
- You may have a category of sundry, or miscellaneous, creditors on the books for occasional or small vendor relationships, rather than setting up a separate vendor account for these infrequent...
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
- sundry creditor shows credit balance.
What is the answer to Problem 5-1A from Financial Accounting Fundamentals 2009 version?
Refer
to Problem 5-1A, using the Sample Company Chart of Accounts (5-digits account
number) the journal entry on July 1 is a debit to _______________ for $1,500. Just enter the 5-digits account number
What statement does Accounts payable show?
Balance sheet of the company shows the total amount of accounts payable for a fiscal year of business.
How much do entry level accountants make per year?
Entry-level accountants in the United States typically earn between $50,000 and $65,000 per year, depending on factors such as location, industry, and the size of the firm. Salaries may vary significantly based on regional cost of living and demand for accounting professionals. Additionally, those with advanced degrees or certifications, like CPA, may command higher starting salaries.
What is a sales returns journal?
Sales returns journal records all sales return transactions only and no other transaction of business is recorded.
What will be content of trial balance?
The contents of a trial balance will be your assets, liabilities, and equity accounts and all your ledger (temporary accounts). This is to check for accuracy in your ledger accounts and that your financial statements "balance out'. After you do your "trial balance" you then close your books for the year, closing all temporary accounts which include expenses and revenue (income). Once this is complete you prepare a Post-Closing Trial Balance (post-closing meaning "after closing"). This is to double check that all ledger accounts are closed properly and that your financial statements balance.
How do you account for sales to subsidiary?
The parent company accounts for the sales to its subsidiary as "sales" or "revenue".
Let's look at Wal-Mart. As most of us know the "Main Office" or "Headquarters" to Wal-Mart is located in Bentonville, Arkansas. We also know that this isn't the actual Wal-Mart store, there are thousands of those around the Country. Now let's look at a local Wal-Mart store. This store operates under the supervision of the "home office", however this individual store does not "own the property" nor does it make their own goods that they sale, instead, they "rent or lease" the building from the home office as well as purchase many of their goods from the warehouse in Bentonville. These purchases and expenses are the local Wal-Marts expenses and operating cost, while for the home office or aka Parent Company it becomes Revenue (income.)
What accounting principle requires revenue to be reported when earned?
In GAAP there are two basic accounting principles. The first being Accrual (which is the most commonly used) and the second being Cash Basis.
Neither stipulate that income has to be "earned" before it is reported. The difference in the two are:
Accrual basis accounting transactions are reported as they happen.
1. For example, a contractor gets paid to remodel a home, he's received the money for the job, but hasn't earned it, completed the work. Accrual account states that this transaction be recorded as a liability (unearned revenue) to the company until the revenue is earned.
2. Say the opposite is true in accrual accounting, the contractor finished the remodeling but isn't expected to be paid for it until later in the future. The company records this transaction as an asset (account receivable).
Now let's look at Cash Basis: Cash basis states that a transaction didn't actually happen until such time the money is received, period. Take example 1, a transaction in cash basis accounting is recorded because money was actually received, even though it hasn't been earned.
Example number 2 however, would be no recording of the transaction, although the job was finished, no money exchanged hands as of yet.
This is why many businesses use accrual accounting. Only small companies that generally deal in cash or small amounts tend to lean toward cash basis accounting and it is still not recognized as a very good method of accounting by the GAAP.
Why is Cost accounting a subset of management accounting?
The main purpose of cost accounting is to provide management with financial information necessary to make business decisions. Cost accounting focuses mainly around cost variances, budget analysis, etc.
Financial accounting on the other hand ensures that information being reported to outside investors/users is accurate and in compliance with a given financial reporting framework.
Hope this helps...
Is mortgage payable debit or credit?
Mortgage payable is liability for business and like all liabilities it also has credit balance and shown in liability side of balance sheet.
What is the registration code for powerarchiver 2010 11.71?
regestration code is 544-555-996-555-444-
How do current assets differ from the current liabilities?
Current assets are different from current liabilities in this sense that current assets are usable in current fiscal year to generate revenue while current liabilities are all those amount or items which are already used in current fiscal year and amount is still payable in current year.
When you use cash to pay down account payable how does it affect the accounting equation?
Assets decrese, liability decreases, and Owner's equity has no change. Assets=Liabilities+SE
What is the relationship between balance sheet and trial balance?
A balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership or a company. Trial balance lists the debit, credit accounts for a given ledger for a month. Trial balance is created in two columns one with all the debit balances and the other with all the credit balances. If the total of the debit column does not equal the total of the credit column then there is an error in the ledger accounts. The assets, expenses will be recorded under the debit balances. Liabilities, equity and revenue will be recorded under the credit balances.
Are accounts payable an interest free source of funding?
Yes, accounts payable are very famous and cheapest source of short term borrowing as normally for repayment of accounts payable not any or some times very small percentage of interest is attached as compare to other sources of short term finances.
How representative bodies can support the employee?
They can offer assistance through work based representatives and can help employees in Health & Safety, Pensions, Redundancy and Collective Bargaining.
What is the journal entry of Advance received from debtors?
Debtors are those customers who purchase goods from company on credit so no advance can be issued by debtors. on the other hand advance can be received from customers and accounting entry is as follows:
[Debit] Cash / bank
[Credit] Unearned revenue
What transactions are recorded in the debit column of a customer account?
The main one would be sales. But you can also have refunds given and late payment charges.
