I want to know the journal entries regarding accounts payable. Please answer to this question if anyone knows

carine2010

you know that account payables are current liabilities and that current liabilities increase at the credit side and decrease at the debit side. so when you are recording entries in the journal think of it. illustration mr brown is a sole proprietor dealing in toys.he sells 25 toys at £1000 each to mr jones on credit.here the account payable is increasing so you will credit it and debit mr jones who is a debtor.but when mr jones will pay you will debit account payable and credit mr jones.

segcor

You would credit accounts payable to increase it and debit accounts payable to decrease it. The increase or decrease would correspond to a debit of some expense or asset account (increase) or credit some expense or asset account (decrease).

Ie: Call up Office Depot and order a $500 photo copy machine and $20 in paper.

When the item is delivered:

Debit office equipment $500
Debit office supplies expense $20
Credit accounts payable $520

When you issue a cheque for $520 to Office Depot:

Debit accounts payable $520
Credit bank account $520