Journal Entry for Accounts Payable

A journal entry for accounts payable is typically recorded when a business makes a purchase on credit, meaning it acquires goods, services, or an asset but does not immediately pay for them. Instead, the business agrees to pay the supplier at a later date.

Accounts Payable Journal Entry

Journal Entry:

1. For Purchase of Goods on Credit:

2. For Purchase of Assets on Credit:

Example 1:

Goods purchased on credit for ₹10,000. Record the necessary journal entry.

Solution:

Example 2:

Furniture purchased for ₹50,000 on credit. Record the necessary journal entry.

Solution:

Article Tags :

Accountancy

Commerce

Journal Entries

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