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    imann's Avatar
    imann Posts: 5, Reputation: 1
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    #1

    Jul 5, 2007, 10:02 AM
    Special Journals and A/P
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    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's Avatar
    imann Posts: 5, Reputation: 1
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    #3

    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #4

    Jul 5, 2007, 08:41 PM
    You're welcome
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