{"id":8822,"date":"2015-08-21T07:00:30","date_gmt":"2015-08-21T05:00:30","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=8822"},"modified":"2015-08-16T19:06:35","modified_gmt":"2015-08-16T17:06:35","slug":"payable-for-expenses","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/payable-for-expenses\/","title":{"rendered":"Payable for expenses"},"content":{"rendered":"<p>There are two things one can buy from a supplier \u2013 an item of inventory or an item of expense (be it service or an item charged directly to expenses). Whilst items of inventory are a topic on their own, with this post we&#8217;ll focus on expenses.\u00a0\u00a0\u00a0<!--more--><\/p>\n<p>Once you&#8217;ve determined that an invoice is to be charged to expenses, you must next determine the expense account you&#8217;ll charge it onto. Say for instance you bought fuel to your car and this is to be charged to an income statement account &#8216;Fuel&#8217;. Your accounting entry would then look something like this:<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>#<\/b><b>\u00a0<\/b><\/td>\n<td><b>Debit-Credit<\/b><b>\u00a0<\/b><\/td>\n<td><b>Account name<\/b><b>\u00a0<\/b><\/td>\n<td><b>Amount\u00a0<\/b><b>\u00a0<\/b><\/td>\n<\/tr>\n<tr>\n<td><i>1<\/i><\/td>\n<td><i>Debit<\/i><\/td>\n<td><i>Fuel<\/i><\/td>\n<td><i>50<\/i><\/td>\n<\/tr>\n<tr>\n<td>&nbsp;<\/td>\n<td><i>Credit<\/i><\/td>\n<td><i>Payable to suppliers<\/i><\/td>\n<td><i>50<\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>Should it be that you&#8217;re paying on spot, your entry would be as follows:<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>#<\/b><b>\u00a0<\/b><\/td>\n<td><b>Debit-Credit<\/b><b>\u00a0<\/b><\/td>\n<td><b>Account name<\/b><b>\u00a0<\/b><\/td>\n<td><b>Amount\u00a0<\/b><b>\u00a0<\/b><\/td>\n<\/tr>\n<tr>\n<td><i>1<\/i><\/td>\n<td><i>Debit<\/i><\/td>\n<td><i>Fuel<\/i><\/td>\n<td><i>50<\/i><\/td>\n<\/tr>\n<tr>\n<td>&nbsp;<\/td>\n<td><i>Credit<\/i><\/td>\n<td><i>Cash account<\/i><\/td>\n<td><i>50<\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>With this you&#8217;ve accounted an expense on to your income statement and effectively decreased your earned profits for the period.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are two things one can buy from a supplier \u2013 an item of inventory or an item of expense (be it service or an item charged directly to expenses). Whilst items of inventory are a topic on their own, with this post we&#8217;ll focus on expenses.\u00a0\u00a0\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[74],"tags":[],"class_list":["post-8822","post","type-post","status-publish","format-standard","hentry","category-2-7-accounting-in-itself"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/8822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=8822"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/8822\/revisions"}],"predecessor-version":[{"id":8823,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/8822\/revisions\/8823"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=8822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=8822"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=8822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}