Accounts Payable is the amount which is payable by company for the merchandise purchased by company but payment is due in future, as it is the liability of company so like all liability accounts it has credit balance as normal balance.
Accounts Payable is the amount which is payable by company for the merchandise purchased by company but payment is due in future, as it is the liability of company so like all liability accounts it has credit balance as normal balance.
Accounts payable is a credit balance, because that is how much you owe to another company.
Accounts receivable (the amount you will receive from another company) is a debit balance.
Accounts Payable has a credit balance.
debit
[Debit] Purchases [Credit] Accounts payable
[Debit] Accounts payable [Credit] Cash / bank
Debit Accounts Payable and Credit either the account where the original debit was made or Credit Other Income
[Debit] Purchases account [Credit] Accounts Payable
debit
Accounts Payable is a Liability and therefore its normal balance is a Credit on the Balance Sheet
account payable account debit to bank account
When company purchases more goods on credit then it increases the accounts payable as goods will be debit and accounts payable will be credit.
The accounts payable balance is a credit, so a debit to this account will decrease the balance.
No, it is a Credit because Accounts payable is a Liability account.
[Debit] Bank account xxxx [Credit] Accounts payable account xxxx