8- What do you understand by accounts receivable and accounts payable and its schedule?
- 1 Answers
- 2587 Views
- I also Faced
- E-Mail Answers
Answer Posted / aqeelraza
The list of debtors or creditors consists on parties name, amount etc. is the schedule of accounts receivable or account payable scratched from subsidiary ledger; sub ledger of general ledger; especially made for parties.
Creditors are those from whom we purchase merchandise on credit by crediting their accounts as account payable and debtors are the parties to whom we sell merchandise on account by debiting their accounts as account receivable. For example, we purchase merchandise goods worth Rs.10, 000/= from A.I. Traders on credit, we shall open A.I. Traders Account (A/c payable) and on paying some amount or Rs.5000/= from his account shall debit his account as A.I. Traders (A/c Payable), the balance will remain in credit Rs.5000/= indicate us to pay later.
The schedule of debtors and creditors may indicate the position of parties altogether or individually for management purposes that requires with a payment or receiving point of view and for linking with general ledger control account.
| Is This Answer Correct ? | 3 Yes | 0 No |
Post New Answer View All Answers
How you can adjust entries into account?
What can go wrong if you have a balance sheet with a lot of debt? What can go wrong if there is negative owner's equity? What does a good cash flow statement look like and why?
Knowing what you know now, walk me through what you would do differently to drive even more success?
what are the basic elements to prepare a quarterly information system and how to calculate that items?
Who created snapit accounting?
Explain me where a cash discount should be recorded in journal entry?
What is recording damage inventory in books of account?
"Closed Period" method. our current company method of accounting is called the "OPEN PERIOD". It's time we'd like to use the "CLOSED PERIOD". What is the standard timing and detailed procedure for closed period most of the company have been used. Please advise. thanks.
plz can some one tel me "The concept of stock holder's equity and paid in capital".
Tell me what is “deposit in transit”?
What is the difference between depreciation and amortization?
M/s ABC Brothers, which was registered in the year 2000, has been following Straight Line Method (SLM) of depreciation. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 lakhs as a result of which the firm would qualify to be declared as a sick industrial unit. The auditor raised objection to this change in the method of depreciation. The objection of the auditor is justified because (a) Change in the method of depreciation should be done only with the consent of the auditor (b) Depreciation method can be changed only from WDV to SLM and not vice versa (c) Change in the method of deprecation should be done only if it is required by some statute and change would result in appropriate presentation of financial 6 statement (d) Method of depreciation cannot be changed under any circumstances
Explain the types of ledger?
What are the most important goals of accounts receivable?
What is customer account?
