| Payables are liabilities so you would record them as liabilities. There are two types of liability accounts: current liabilities and long-term liabilities. Current liabilities are those that are expected to be paid off within one year or the operating cycle, whichever is longer. Long-term liabilities are those that are going to be paid off in a period of time exceeding one year. For example, an account payable to a supplier that is to be paid within 2 months is a current liability; an account payable to the bank for a mortgaged property would be a long-term liability, only the portion that is due within the next year is classified as current.
You also have a subsidiary journal with a separate section for everyone you owe money to. You record each individual payable there and only report the total on the balance sheet. | 
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