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imann
Jul 5, 2007, 10:02 AM
I am confused about where A/P goes in the Cash Payments Journal. I was taught that Accounts Payable is a credit in the CP Journal but I have a book that shows that in the "Cash Payments Journal" Accounts Payable is a debit. How can it be both and who is right?

CaptainForest
Jul 5, 2007, 12:22 PM
Who taught you it was a credit?

Cash Payments/Disbursements Journal indicates when you PAY someone else cash. Therefore, you will always CREDIT Cash. And you will debit, Accounts Payable, Salaries Payable, etc.

imann
Jul 5, 2007, 06:45 PM
thank you, actually it was my instructor which is why I was confused when the book showed it as a debit, which makes logical sense. Thank you for confirming this.

CaptainForest
Jul 5, 2007, 08:41 PM
you're welcome