Accounts Payable on Trial Balance

Accounts payable is the current liability that is present on the balance sheet in the liability section.

Accounts payable represent a liability for a company when goods or services are purchased on credit from suppliers. These items are classified as current liabilities on the balance sheet and are typically due within one year. The company expects to pay this back in full within a short timeframe, usually within 30-60 days.

Accounts payable are one of the most important liabilities that a company will face. This is because they arise due to normal business operations such as the purchase of goods or services. Accounts payable are also the expenses that a company has not yet made the payment to their supplier. Therefore, it is crucial that a company understands how to properly manage its accounts payable in order to stay within its budget and avoid any late payments.

It is important to manage accounts payable effectively in order to avoid default and maintain good relationships with suppliers. Companies often set up a system of invoices and payments, whereby they track all outstanding items and make payments accordingly. By staying on top of accounts payable, companies can avoid financial difficulties and keep their business running smoothly.

Accounts Payable on Trial Balance

The accounts payable is the liability, so it is present on the credit side of the trial balance. We can look at the accounts payable on the trial balance as follows:

Account	Debit	Credit
Cash	10,000
Accounts receivables	20,000
Plants and machinery	80,000
Land	50,000
Accounts Payable		20,000
Long-term Liability		70,000
Shareholders’ equity		70,000
Reserves and surplus		20,000
Revenue		20,000
Accrued expenses	10,000
Salary expenses	30,000

Accounts payable are present on the credit side of the trial balance. It is the negative side of the report.

The total on the debit side will equal the total on the credit side. They will be net off to zero balance. The trial balance arrives from the double entry record in which the debit and credit are equal. So the total of both sides on the trial balance will be equal too.