What is the deference between accounts payable and note payable?

accounts payable :-means the outstanding balances to suppliers.

notes payable :-means the post date checks that prepared to close the suppliers outstanding balances.

In case of Note Payable you have to sign a Promissory Note and to give some formal guarantee to the lender in shape of Pledging  but in Accounts Payable no need of Such Regulations.

 

Accounts payable is the fund or amount owed by any business entity or individual to their suppliers. Accounts payable can be made by trust or a word of mouth or an agreement.

Where as Note payable is the a written agreement in which the business entity or individual will mention the amount owed from their supplier and will promise to pay back the amount owned. The person who lends money is called Payee and the person who owed money is called maker.

If you can sales some commodities on account and there is no cash transaction is made these transaction is called account payable. And in case of note payable supplier made written agreement with the buyer in future payment is called note payable

Notes Payable mean not due yet , later payment but received by debtors or even contractors received it as grantee like rent check2 months insurances  , accordingly you must always follow Notes payable status.