Accounts Payable Journal Entries

The accounts payable journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of accounts payable.

In each case the accounts payable journal entries show the debit and credit account together with a brief narrative. For a fuller explanation of journal entries, view our examples section.

Typical Accounts Payable Journal Entries


To record a purchase of inventory on account from a supplier
Account Debit Credit
Purchases XXX
Accounts payable XXX

To record a purchase of services on account from a supplier
Account Debit Credit
Expense Account XXX
Accounts payable XXX

To make a cash payment to a supplier
Account Debit Credit
Accounts payable XXX
Cash XXX

 

 

 


To make a cash payment taking a supplier early settlement discount
Account Debit Credit
Accounts payable XXX
Discount received XXX
Cash XXX

Goods returned and a debit note is issued to a supplier
Account Debit Credit
Accounts payable XXX
Purchases XXX

Notes payable issued to replace an accounts payable
Account Debit Credit
Accounts payable XXX
Notes payable XXX

 

 

 

Last modified May 4th, 2019 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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