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Debit Accounts Payable

oboloo Glossary

Debit Accounts Payable

Debit Accounts Payable is an official business definition that is used to refer to the liability of a business for goods and services that have been acquired on credit terms from suppliers. It is an accounting entry that is used to record the amount owed to a company’s suppliers for goods and services that have been purchased from them on credit. Debit Accounts Payable is the total amount the company owes to the supplier when the invoice is received. This amount increases with each additional credit purchase and decreases when payments are made. The Debit Accounts Payable account is used to track the total outstanding balance due to suppliers and is also important when reconciling the accounts payable ledger. It is also referred to as ‘Creditors’ or ‘Accounts Payable’ and its balance should be equal to the total of all unpaid invoices.

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