Paid Creditors On Account
Accounting ... secured payments by lenders? 3
Hi, I received a ticket for this accounting transaction which was paid to the lenders in one account, 1420. So I have to post the account using the accounting equation ets = Liabilities + Oers Equity. I added 1,420 to my liability but was forced to do the transaction elsewhere to balance the equation.
When you say that the lender pays on credit, it means that you are paying the bill already paid. So I'm not going to add it to the loan, I'm going to reduce it. There are appropriate journal entries.
Doctor Payable Accounts 1420
No. 1420
So if you look at your accounting equation, bills (payable accounts) and ats (cash) will be less than the same amount. Equality is in balance.
The lender pays into the account.
Paid Creditors On Account
Paid Creditors On Account
1. Lenders do not have the time or staff to collect the money themselves. 2. Lenders receive money from lending agencies. Billing companies keep money for themselves and use it to pay employees, make calls, and so on.
