Accounts Payable Debit or Credit

Here we will study about Accounts Payable Debit or Credit Balance In Accounting.

You may also be interested in “Accounts Receivable Debit or Credit”

Accounts Payable is the amount payable to the suppliers or creditors for the goods purchased on credit basis or the company for the services rendered to the customers on account. It is a Current Liability

 

The normal or favourable balance of Accounts Payable / Creditors is Credit Balance that is the closing balance transferred to Balance Sheet Under Current Liabilities On Liabilities & Equity Side.

When Accounts Payable / Creditor increases, we credit it and when it decreases we debit it on the Journal of Accounts Payable.

The Debit Balance is Negative or Unfavourable Balance for Accounts Payable as Liabilities have Credit Balance which is payable by the business to outsiders.

So, it is all about Accounts Payable Debit or Credit in Accounting.