Question

On scrap paper, post the above journal entries to their respective t-accounts. You may assume the "Cash" account has a beginning balance of $50,000. Since the company has paid the supplier in full by April 15, is the "Account Payable" balance equal to zero?

Answer 1

Answer:

BANK  

DR BALANCE                   50 000

      CR ACCOUNTS PAYABLE      15 000

 

ACCOUNTS PAYABLE  

DR BANK                       15 000

     CR CREDITORS CONTROL     15 000

Since no figures are given, we use $15 000 as an example to show how much a creditor was owed and has been paid.  

Since the creditor has been paid in full, the accounts payable is now at $0 at the end of the month.