Wednesday, August 17, 2011

Accounting Question, Please help?

You paid $600 in credit. You made such a payment either because you received services or goods. Such a transaction lead to increase in liabilities as you increase you ets. In this case your liability is $600. Your et must also have the same value($600). So your et(goods or services) will be the debit while the account payable will be the credit.

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