Paid Creditors On Account Journal Entry
A compa ny paid cas h to suppliers, creditors or accou nts payab le for goods purchased o n account or credit. A company may need cas h to purc h ase goods for running its b usi ness operations and suc h requirement is fulfilled b y suppliers of goods. It is a Cas h Payme nt and outflows of cas h from the poi nt of view of b usi ness. T he jour nal entry to record cas h paid or check paid to supplies is recorded i n Cas h Book a nd Creditor or Accounts Payab le Ledger’s Account . Following journal entry is recorded as s how n b elow: Creditors a/c / Accou nts Payab le a/c XXX Cash a/c / Ba nk a...