Introduction to Accounting

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Accounts payable had a normal starting balance of $800.  There were debit postings of $600 and credit postings of $300 during the month. the endng blance is

a. $500 debt

b. $1,000 debit

c. $500 credit

d. $1,000 credit

Oct 22nd, 2017

Hello. When you work with payable accounts they are normal credit balances. I try to remember this by thinking about it being on the right side of the T account. So with it being a credit, debits actually decrease the balance. Let's try it in a T account:





We reduce the balance by the debit 600 and increase it by the credit 300. Leaving with a balance of $500.00. T-Accounts can be awesome!

Good Luck. Hope this helped!

Feb 15th, 2015

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Oct 22nd, 2017
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