Payment of a Liability Using Cash
You decide on a fixed assets purchase of new machinery for the business of £5,000 and are able to obtain credit from the Supplier. The post Payment of a Liability Using Cash appeared first on Double...
View ArticleCreditors Basics
Creditors are amounts which are owed by you to your suppliers, they are sometimes referred to as Accounts Payable or Trade Creditors. If your supplier allows you credit and invoices you for a product...
View ArticleBuy Goods on Credit from a Supplier
If as a business, you buy goods on credit from a supplier (creditor) then the supplier will supply the goods and business will incur a liability to the supplier for that amount, but no cash will change...
View ArticleQuiz 1: Accounts Payable
Take our accounts payable test questions and answers to check out your knowledge of trade accounts payable used in double entry bookkeeping. The post Quiz 1: Accounts Payable appeared first on Double...
View ArticleWhat is Accounts Payable?
Accounts payable are amounts which are owed by you to your suppliers for the purchase of trade goods or services, they are sometimes referred to as trade payable or trade creditors. Accounts payable...
View ArticleAged Accounts Payable Report
The aged accounts payable report is a listing of outstanding balances by supplier, analyzed into difference age classifications based on the number of days a vendor invoice is overdue for payment. The...
View ArticleAccounts Payable Journal Entries
The accounts payable journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of accounts payable. In each case...
View ArticleSupplier Invoice Payment Terms
When goods or services are purchased on account from a vendor, the invoice will stipulate the vendor invoice payment terms. These payment terms indicate when an invoice is to be paid. For example, an...
View ArticleAccounts Payable Payment
When goods are purchased on credit from a supplier the amount owing to the supplier is recorded as an accounts payable. When a payment is made to the supplier for the amount outstanding the payment of...
View ArticlePurchase Office Supplies on Account
Purchasing office supplies on account will be recorded as a current asset (supplies on hand). As the supplies are purchased on account, the other side of the accounting equation is a liability to the...
View ArticleCash Discount Received
A business has been invoiced 500 for goods and takes a 2% cash settlement discount for early payment. The original invoice would have been posted to accounts payable, so the balance before settlement...
View ArticlePurchase Services on Account
Purchasing services on account will be recorded as an expense to the business. As the services are purchased on account, the other side of the accounting equation is a liability to the supplier...
View ArticleReceived Utilities Bill
A utilities bill will be recorded as an expense to the business. As the business is given credit by the supplier, the other side of the accounting equation is a liability to the supplier (accounts...
View ArticleAccounts Payable Control Account
The accounts payable control account is an account in the general ledger which maintains summary postings relating to accounts payables. The account, which is sometimes referred to as the purchases...
View ArticleSupplier Statement Reconciliation
A supplier reconciliation sometimes referred to a vendor reconciliation is used to ensure that all supplier invoices, credit notes, and payments have been recorded correctly in the accounts payable...
View ArticleAccounts Payable Internal Controls
Internal controls for accounts payable are used to reduce the risk of fraud and error in the accounts payable process. The purpose of the internal controls is to ensure that only valid supplier...
View ArticlePurchase Discount in Accounting
Purchase discounts are shown in the income statement and are recorded in a contra expense account and offset against the gross purchases of the business. The post Purchase Discount in Accounting...
View Article
