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    hazel magollado's Avatar
    hazel magollado Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jul 15, 2009, 12:37 AM
    Payable, debited?
    Is there a possibility that payable will be debited? I'm a freshman student. Thank you.
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    Jul 15, 2009, 03:48 AM

    Yes liability will be debited when you pay the liability. So you will record Dr. Liability and Cr. Cash
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Jul 15, 2009, 03:09 PM

    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.
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