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The amount you are billed is the amount you pay and it is reported as just that. You report the dollar amount you pay out and report the same. There is no "value" factor involved in that process. If what you are purchasing is going to increase in value, such as a piece of equipment, it does not belong under accounts payable, rather under capital expense.
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Where should i put carriage inwards in Trade payable control account?
trading account expenses
What if packing slip shows a shortage what should account payable do?
If the packing slip shows a shortage, the Accounts Payable department should send it back.
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
The revenue recognition concept states that revenue should be recorded in the same period as the cash is received?
False Because it determines when revenue is credited to a revenue account. Cash method means the transaction is reported when cash is received, but the revenue recognition concept means a transaction is reported as a sale even if no money has been paid. Cash basis does not recognize payable or receivable accounts.
When an interest-bearing note matures the balance in the Notes Payable account is?
The principal or maturity value. The premium or discount should be fully amortized down to zero.
Is accounts payable a debit or creit balance account?
Accounts Payable is a liability so it should be a credit balance.
Does a credit to accounts payable represents cash paid to creditors?
No actually... Cash paid to credits should credit cash account and debit payable account
Does credit to accounts payable represents cash paid to creditors?
No actually... Cash paid to credits should credit cash account and debit payable account
Does a credit to accounts payable represent cash paid to creditors?
No actually... Cash paid to credits should credit cash account and debit payable account
Where should i put carriage inwards in Trade payable control account?
trading account expenses
What if packing slip shows a shortage what should account payable do?
If the packing slip shows a shortage, the Accounts Payable department should send it back.
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
Where should you put the purchases and sales of inventories on credit on statement of cash flow?
in Account payable and account receivable
What is the journal entry for mortgage loan in accounting books?
For a mortgage payment, the only amount that should be listed in the Mortgage Loan Payable section is the principal amount. Any interest that has accrued is reported as Interest Payable.
The revenue recognition concept states that revenue should be recorded in the same period as the cash is received?
False Because it determines when revenue is credited to a revenue account. Cash method means the transaction is reported when cash is received, but the revenue recognition concept means a transaction is reported as a sale even if no money has been paid. Cash basis does not recognize payable or receivable accounts.
If an executor as not done that liquidation and distribution account correctly can you request it to be redone?
That situation should be reported to the court immediately and the executor should be required to correct their error in the distribution and file an amended account.
How do you close account if account holder is not present?
If the account holder is incapacitated, then someone should obtain the power for attorney for that person. If the account holder is deceased, then you need a death certificate to prove that. And those are the only two circumstances in which it is necessary to close an account when the account holder is not present.
