Question

What Is Account Payable? How We Pass The Entries In Account Payable?

Answer 1

Accounts Payable – Explanation and Journal Entries. Accounts payable are obligations of a business that originate because of purchases made on credit (e.g. for raw material, finished goods etc.), the money is yet to be paid for these transactions.

Answer 2

Explanation:

Accounts payable entry. When recording an account payable, debit the asset or expense account to which a purchase relates and credit the accounts payable account. When an account payable is paid, debit accounts payable and credit cash.