Last Updated on 12/08/2022 by GS Staff
Q: Is accounts payable a debit or credit?
A: Accounts payable is a liability because it represents money that is due to be paid by a company. It has a normal balance of a credit. This means that accounts payable increases with a credit and decreases with a debit.
In other words, if a company receives goods but still owes the supplier for the goods, accounts payable is credited. Accounts payable is debited when the company eventually pays for the goods in cash.
Below are the normal balances of common accounts. Remember that these accounts increases by their normal balances.
Retained Earnings: Credit