Example Of Account Payable. For example, a company does not issue a purchase order to its electric utility for a pre-established amount of electricity for the following month. Payables in general are carried as balance sheet An account payable is a bill to pay, or moneya buyer owes to a seller.
Both accounts payable and accounts receivable are vital parts of the accounting process.
It is impossible to give a complete set of examples that address every variation in every situation since there are hundreds of such payables.
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Accounts payables balance is affected by the amount of credit purchase, sales tax, discount received, purchase returns and the payments to suppliers. Note: The above examples are based on a full. Accounts payable (A/P) is the money you owe vendors who have provided you with goods and/or services on credit.
