What is accounts recevable & acct. payble? How they are
efect in real life accounts of the company?
Answers were Sorted based on User's Feedback
Answer / durga bhavani
the comapny purchase or sells the goods either cash basis
or credit basis. If the comaany purchase the goods on
credit basis the account payable will araise. Account
payable is aliablity . when the company pay that amount it
will be deducted from the account payable account. account
receivable is an asset of the company .if the company sell
the goods on acredit basis to customer the amount will be
transfered to account receivable account .
Is This Answer Correct ? | 35 Yes | 3 No |
Answer / immanuel jacob
Accounts payable are amounts a company owes because it
purchased goods or services on credit from a supplier or
vendor. Accounts receivable are amounts a company has a
right to collect because it sold goods or services on
credit to a customer. Accounts payable are liabilities.
Accounts receivable are assets.
Let’s assume that Company A sells merchandise to Company B
on credit. (Perhaps the invoice states that the amount is
due in 30 days.) Company A will record a sale and will also
record an account receivable. Company B will record the
purchase (perhaps as inventory) and will also record an
account payable.
Our example reminds me of an old saying, “There are two
sides to every transaction.” In accounting we also expect
symmetry: Company A has a sale and a receivable, Company B
has a purchase and a payable.
Is This Answer Correct ? | 8 Yes | 1 No |
EXPAND_________VHF
Weather Entry tax on consumable goods purchased against CST
Why did you leave previous job?
5 Answers ABN AMRO, Genpact, ICICI, India Infoline,
Depreciation
9 Answers Genpact, Ramel Industries,
please tell me that fictitious account is what type of account i.e real,nominal or personal account??
What is a zero debt company?
Presently I am Working with one of the manufacturing unit and I want to know the % of calculation of esic & provident fund from basic & dearness allowance.
what is accounting standard ?
2 Answers GE Healthcare, Virchow Biotech,
who are minority share holders or what is minority shareholders?
Up to what time we can show TDS Receivables under Advance Income Tax A/c?
what is revenue expenditure
Entry for the settlement of loans?