The official business definition of Notes Payable is a written promise to pay a certain amount of money at a specified time in the future. It is an obligation of the business and is recorded as a liability on the balance sheet. Notes Payable is a form of short-term debt and is typically recorded as a debit on the balance sheet. The debit is recorded in the liabilities section of the balance sheet, which increases the total liabilities of the business. The credit is recorded in the cash account, which decreases the total cash balance of the business. Notes Payable is a common form of financing for businesses, as it allows them to obtain funds quickly and easily. It is important to remember that Notes Payable is a form of debt and should be managed carefully to ensure that the business is able to meet its obligations.
