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A corporation received a check from a client sum of $10000. And corporation endorsement this check for a supplier and the corporation's accountant?

recorded this transaction as following :

The supplier /debit  10000

                 10000   Notes payable / credit

The question is . Do you think that entry is right or wrong ?

Accounting Auditing Financial Accounting US GAAP Banking
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Question added by Deleted user
Date Posted: 2015/08/06
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Abdur Rahim
by Abdur Rahim , Audit Trainee , Omer Adil & Company Chartered Accountants

The debit side of entry is correct But by crediting notes payable he is taking double effect on supplier side. The credit side should be Account Receivable Client with10000.

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