Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Accounts payable payment journal entry.Which one is correct ? (A) Dr. Accounts payable / Cr. Cash (B) Dr. Accounts payable / Cr. XYZ

user-image
Question added by Falak Sher Khan Khan , Accountant , Star Marketing (Pvt) Ltd
Date Posted: 2015/03/12

Answer is

>>A) Dr account payable

         Cr cash

Soumya Kanta Nayak
by Soumya Kanta Nayak , Branch Manager , ICICI Bank Ltd

when payable is created the entry was goods dr to accounts payable. now when we make the payment we have reduce the liability side. so Accounts Payable dr to cash. so A is the answer

Mohsin Diwan
by Mohsin Diwan , Accountant , Quality Punch

Right Answer is option A, Because a/c payable is liability and when it's debit it means you paid your payable which in result decrease your assets not your company (XYZ). So, Option A contains a right entry Dr A/c payable and Cr Cash.

Anas  Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

Dr. Account Payable  xxx

    Cr. Cash                       xxx

Jigme Cheda Tshewang
by Jigme Cheda Tshewang , excutive accountant , Tashi

Answer will be" B" because creditor  are who has to pay to debtor after received goods

Samsheer ck samsheer
by Samsheer ck samsheer , Accounts Manager , Al madina group

Correct Answer is 

         Account payable A/c  Dr

          Cash A/c  Cr

Remesh Punnoparambil
by Remesh Punnoparambil , Secretary , Sakhir Palace

Answer will be B, Because it is Payable

The correct entry would be A, Dr. AP and Cr. Cash.

Senthil Velu Sivanandam
by Senthil Velu Sivanandam , Accounting Manager , Volume Cocomo

The Answer will be Dr: Accounts Payable / Cr: Cash

Esmat Guindy
by Esmat Guindy , Senior Accountant , EVA PHARMA PHARMACEUTICAL

Option a is right because after the paymeny the cash or bank decreases by the amount which it was paid for the supplier with then the bank or cash must be credit. and the account payable is a transitory account you should debit it in order to close the first entry which you have throw it in the expense entry.

Leonard Santiago
by Leonard Santiago , Analyst - Financial & Budget , Unified Real Estate Development Company

Answer: A.

Debit: Accounts Payable

Credit: Cash

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.