Accounts Payable

by Arthur
(New Zealand)

My year end balance sheet for last year, shows accounts payable, a liability. This means that the expense for this liability has been taken in the the past year, but of course the payment has not been made. How do I account for the payment of this liability, which of course will happen in the new year? I don't have an expense (since it has already been taken last year) to match the payment in this year. So when I credit my bank account, what is the debit account?

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Accounts Payable Questions.

Please subscribe to my monthly newsletter, Bookkeeping Basics E-zine. It tells you each month about the new information that I have added, including some great tips and advice from myself and other Bookkeeping Basics readers.

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Bookkeeping Basics E-Zine.