What 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 are recorded in the balance sheet of the business under the heading of current liabilities, that means they are payable within a year.

What is Accounts Payable? June 5th, 2018Team
Read more

Buy 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 hands at that stage. Suppose for example, the business buys goods on credit for the amount of £4,000.

Buy Goods on Credit from a Supplier November 6th, 2016Team
Read more

Creditors Basics in Accounting

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 or service and you make payment at a later date 30 days 60 days etc, then while you owe the supplier the money they are classified as a creditor of your business.

Creditors Basics in Accounting June 5th, 2018Team
Read more

You May Also Like


Related pages


how to use npv function in exceljournal entry for prepaid incomejournal entry to record accounts payableretained earning statement examplelower of cost or net realizable value ifrsdepreciation accumulated depreciation journal entrybad debts in profit and loss accountis prepaid rent a current asseteom discountcommon size income statement templatesimple ledger templatecontribution margin vs gross marginpension journal entriescalculating accounts receivablejournal entry for invoicestock option accounting journal entriesfixed manufacturing cost formulastraight line method of calculating depreciationdefinition accrued expensesaccounts receivable forms templatesallowance for doubtful accounts credit or debitthe purpose of the post closing trial balance is toaccount payable formulajournal entry for accrued expensejournal entries for bank reconciliation exampleroyalty payments accountingexcel amortization spreadsheetprofitability indexexcel profit marginunearned fees journal entrynumber of days sales in receivables formulatrade debtor daysprintable ledgers bookkeepingintangibles accountingdeclaring dividendsaccounting tabular analysispetty cash flowexcel present value annuitycontribution margin ratio calculatoroverhead rate calculatorcredits and debits accountinginterest rate excel formulaconsignor and consignee meaningamortize bond discountdeferred tax liability formularetained earnings calculation formuladepreciation expense journal entry exampleluca pacioli double entry bookkeepingunadjusted trail balancehow to solve bank reconciliation statementcalculate ending inventoryexamples of debit and credit entriesgeneral ledger accounts receivablegoods shipped on consignmentaccumulated depreciation journal entriessample of ledger bookprepaid adjusting entrydiscounted cash flows in excelbank reconciliation worksheetsimple payback calculationaverage contribution margin formulaeffective interest amortization calculatormarkup calculator percentwhat is controllable profitdebit note to supplierapplied factory overheadcash payback period calculatorexcel spreadsheet template for small businessjournal general entries accountingonline amortization table generatorhow to calculate depreciation straight line methodbank reconciliation xlscalculate total fixed cost formulaformula for total variable cost