Balance sheet accounts payable

In the balance sheet accounts payable, “Cr” insteads increasing and “Dr” insteads decreasing. The accounts payable are liabilities in the balance sheet. They are shown like this:

• Liabilities
• Non-current liabilities
• Long-term borrowings
• Deferred tax
• Long-term provision
• Current liabilities
• Trade and other payables
• Short-term borrowings
• Current portion of long-term borrowings
• Current tax payable
• Short-term provisions

Liabilities are the financial obligations of an enterpeise. They may arise as a result of a trading transaction or may represent the obligation to repay monies borrowed by the enterprise.

Examples are trade account payable, loans from a bank, and accruals made at the year end before an invoice has been received.

Related posts:

1. Balance sheet example
2. Accounts payable payment period
3. Balance sheet analysis
4. Current and non-current liabilities
5. Balance sheet accounts receivable