tel me the effects of transactions? debit accounts payable, credit cash.

annie shah

in 1st cash increase laibility decrease, in 2nd cash decrease liability also decrease........ is it rite or not?

pready

Debits to an asset increase the account, while a Credit decreases the account.

A Credit to a Liability and Equity accounts increase the account, while a Debit decreases the account.

morgaine300

Cash won't do a thing to liabilities, because it's not one. To do something to a liability, you have to do it directly to that liability. Doing something to one account cannot affect another account.