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Question: What is account payable?
How we pass the entries in account payable and related all the question based on account payable?

Answer: Account payable is the outstanding balance that we must pay to the third party or suppliers.
We pass the entries in account payable from two sides: purchase order and general ledger. Purchase order module will be posted after material order has been arrived in warehouse and combining with invoice plus related documents that have been approved by authorized person. General ledger normally from service entry where it must be attached by service agreement between company and third party.



Category Accounts Payable Interview Questions & Answers - Exam Mode / Learning Mode
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Question: What is account payable?
How we pass the entries in account payable and related all the question based on account payable?

Answer:

Account payable is the outstanding balance that we must pay to the third party or suppliers.
We pass the entries in account payable from two sides: purchase order and general ledger. Purchase order module will be posted after material order has been arrived in warehouse and combining with invoice plus related documents that have been approved by authorized person. General ledger normally from service entry where it must be attached by service agreement between company and third party.
Source: CoolInterview.com

Answered by: alisika | Date: 1/13/2009 | Contact alisika Contact alisika

Accounts Payable is a short term liability of an organization. It's a process by which a company buys goods and services on credit and is billed in the form of an invoice, which states the terms and conditions of the payment. Accounts Payable is recorded as a current liability in the balance sheet. All accounts paayble entries are to be coded under the right G/L accounts to have an accurate picture of the company's short term liability. Source: CoolInterview.com

Answered by: Asif Khan | Date: 1/20/2009 | Contact Asif Khan Contact Asif Khan

a/p which show the balance sheet on liability,who purchase the goods and service on credit . Source: CoolInterview.com

Answered by: shashikumar | Date: 12/9/2009 | Contact shashikumar Contact shashikumar

When booking invoice:
Purchases a/c ....dr
To Party
(if it is a credit purchase other wise cash is credited)
When making payment in cheque:

Party a/c ...dr
To Post dated cheque
(if cash is paid cash will be credited)

When money is with drawn from the bank:

Bank a/c ....dr
To Cash Source: CoolInterview.com

Answered by: Reshmi Jacob | Date: 2/24/2010 | Contact Reshmi Jacob Contact Reshmi Jacob

Accounts payable is module in SAP. For making payments to a vendor agst. the goods/services provided by the vendor,it handles all the liabilities. Source: CoolInterview.com

Answered by: Harinder | Date: 3/1/2010 | Contact Harinder Contact Harinder

Account payable is a process of paying amount to supplier or third party as per the purchase order made.we see three types of account payable entries
1) at point of goods received to wharehouse or store
2)at the time of invoice received
3)on payment of invoice
when a supplier sends goods to the purchaser the goods are reserved or kept at wharehouse as soon as goods received after the verfication entry will be
inventory a/c dr
to grni/grin/recipt controla/c(suspense)
after the goods received and GRN(GOODS RECEIPT NOTE)issued then invoice raised and entry will be
grni/grin/recipt controla/c dr
To vendor a/c
after invoice received and verified we have to issue payment entry
Vendor a/c dr
to bank a/c
these are the main three entries for initial ap process includes


Source: CoolInterview.com

Answered by: vaghdutt | Date: 7/1/2010 | Contact vaghdutt Contact vaghdutt

Accounts payable are the short term obligations of a company, which arise when it purchases some goods on credit or receive some service whose payment is still due. AP are shown under the head current liabilities in the balance sheet. Source: CoolInterview.com

Answered by: rinky malhotra | Date: 7/2/2010 | Contact rinky malhotra Contact rinky malhotra

Money which is owned to vendors for products and services purchased on credit.

entry for accounts payable:

purchase A/c.........Dr

To, party A/c Source: CoolInterview.com

Answered by: B. chandra Reddy | Date: 8/13/2010 | Contact B. chandra Reddy Contact B. chandra Reddy

Accounts Payable are Company Owes, these are Current liabilities because when purchase of goods and services are on Credit from the supplier. Source: CoolInterview.com

Answered by: Nagalakshmi | Date: 5/20/2016 | Contact Nagalakshmi Contact Nagalakshmi


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