Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 31 - No. 28)
What is the journal entry for a business paying cash to settle an account payable?
Debit Accounts Payable, Credit Cash
Debit Cash, Credit Accounts Payable
Debit Salaries Expense, Credit Cash
Debit Cash, Credit Salaries Expense
Explanation
Paying accounts payable reduces a liability (debit Accounts Payable) and reduces cash (credit).
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