Paid Creditors On Account Journal Entry

 

A company paid cash to suppliers, creditors or accounts payable for goods purchased on account or credit. A company may need cash to purchase goods for running its business operations and such requirement is fulfilled by suppliers of goods. It is a Cash Payment and outflows of cash from the point of view of business.

The journal entry to record cash paid or check paid to supplies is recorded in Cash Book and Creditor or Accounts Payable Ledger’s Account.

Following journal entry is recorded as shown below:

                      Creditors a/c / Accounts Payable a/c  XXX

 

                                                                                Cash a/c / Bank a/c  XXX

                                                    (Cash / Check Paid To Creditors)