Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Payable, debited? (https://www.askmehelpdesk.com/showthread.php?t=375790)

  • Jul 15, 2009, 12:37 AM
    hazel magollado
    Payable, debited?
    Is there a possibility that payable will be debited? I'm a freshman student. Thank you.
  • Jul 15, 2009, 03:48 AM
    hamzashakaa

    Yes liability will be debited when you pay the liability. So you will record Dr. Liability and Cr. Cash
  • Jul 15, 2009, 03:09 PM
    morgaine300

    A payable will be debited any time you no longer owe something. That account represents how much you owe, at a credit balance. If you no longer owe it, that reduces the amount you owe, and to reduce a credit account, you debit it. So you will debit payable accounts a lot.

    But it doesn't have to be because it's been paid, so you can't assume the other side of that is cash. That's the most common reason, but it can also be because you return something and therefore no longer owe it, or got a discount off something, or something of that sort.

    There are reasons you can debit OR credit every account that exists.

  • All times are GMT -7. The time now is 09:55 AM.