what is accounts payable and accounts receivable. how to maintain accounts pavable?

Answer 1

accounts payable is an account used to record the amount of credit that u owe other people, while accounts receivable is an account that records how much money people owe you.

for accounts payable, it's pretty simple. let's say u buy inventory worth $5000 for your business, but u don't have the cash for it right now, so the supplier agrees to delay the payment for u until later on. so basically u now bought inventory on credit. in ur books, u will record the following entries:

DEBIT: Accounts Payable - $5000
CREDIT: Inventory - $5000

when u pay the supplier, the amount u owe him now goes away, and ur cash balance is decreased, and ur entry looks like this:

DEBIT: Cash - $5000
CREDIT: Accounts Payable - $5000

hope this was useful!

Answer 2

In simple words "Accounts Payable" is the amount you owe to others and "Accounts Receivable" is the amounts others owe to you. To maintain accounts payable - Debit the Purchase or Expenses and Credit the Supplier or the Bank (if it is OD). If you total the Creditors/ Bank OD you will get the Account payable.

Answer 3

Accounts Payable are the bills you owe. Accounts Receivable are monies due to you. To maintain accounts payable - you keep up with your purchases , then pay your bills on a regular basis.. Of course, you will need cash on hand or a bank account with money in it to do so.

Answer 4

When you purchase or get services, credit supplier. This book of suppliers is called accounts payable. When you sell or charge services you provided, debit the customers. This book is called accounts receivable. Total of each book is reflected as Liability and assets respectively in General Ledger Trail Balance or Balance sheet.

Answer 5

Our mate Kaushik above has got his journal entries the wrong way round. This sort of question is best asked off a tutor or an accountant you know well else you could end up learning wrong things.

Answer 6

Leave that only take are of receivable.