{"id":4394,"date":"2013-08-26T05:58:57","date_gmt":"2013-08-26T03:58:57","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4394"},"modified":"2013-08-25T06:00:30","modified_gmt":"2013-08-25T04:00:30","slug":"accounting-for-account-payables","status":"publish","type":"post","link":"https:\/\/www.officetodo.com\/public\/accounting-for-account-payables\/","title":{"rendered":"Accounting for account payables"},"content":{"rendered":"<p><span style=\"font-family: 'Bangla MN';\">Account payables are your liabilities you have against your suppliers. As it is apparent from the name, on the balance sheet account payables are shown under liabilities, on the opposite side of your assets.<\/span><\/p>\n<p><span style=\"font-family: 'Bangla MN';\">Generally speaking, an account payable can occur when you\u2019re either buying assets, goods or services. It doesn\u2019t really matter if the goods bought are to be resold or used in your own business (i.e. if they are to be included within your inventory until they are sold or if they are to be expensed right away).\u00a0<!--more--><\/span><\/p>\n<p><span style=\"font-family: 'Bangla MN';\">When accounting for a purchase, you either show a decrease in cash right away presuming you did pay immediately after, or you account for an account payable against the purchase itself (i.e. an asset, good or service). The accounting entry for a payable would be as follows:<\/span><\/p>\n<p><span style=\"font-family: 'Bangla MN';\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Db Asset \/ Inventory \/ Expense account<\/span><\/p>\n<p><span style=\"font-family: 'Bangla MN';\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cr Account payable account<\/span><\/p>\n<p><span style=\"font-family: 'Bangla MN';\">As a purchase would increase liabilities, its accounting entry is shown with a credit entry. Consequently, an increase in assets or in expenses would be shown with a debit.<\/span><\/p>\n<p><span style=\"font-family: 'Bangla MN';\">Once you decide to pay your liabilities, you would make a following entry (showing what you gave away for the liability):<\/span><\/p>\n<p><span style=\"font-family: 'Bangla MN';\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Db Account payable account<\/span><\/p>\n<p><span style=\"font-family: 'Bangla MN';\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cr Cash or cash equivalent account<\/span><\/p>\n<p><span style=\"font-family: 'Bangla MN';\">With this you will get the payable balance to decrease and also the respective asset account to reflect that something was given away.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Account payables are your liabilities you have against your suppliers. As it is apparent from the name, on the balance sheet account payables are shown under liabilities, on the opposite side of your assets. Generally speaking, an account payable can occur when you\u2019re either buying assets, goods or services. It doesn\u2019t really matter if the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,80],"tags":[],"class_list":["post-4394","post","type-post","status-publish","format-standard","hentry","category-2-processes","category-2-10-purchases-and-payables"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4394"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4394\/revisions"}],"predecessor-version":[{"id":4395,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4394\/revisions\/4395"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}