different between account payable and account receivable

Question

Accepted Answer

Accounts payable is money owed by a company to its suppliers, while accounts receivable is money owed to a company by its customers.

Accounts payable represents the company's short-term liabilities, while accounts receivable represents its short-term assets.
Accounts payable is recorded as a liability on the balance sheet, while accounts receivable is recorded as an asset.
Accounts payable is typically paid by the company to its suppliers within a specified period, while accounts receivable is collected from customers within a specified period.
Accounts payable can include invoices for goods or services received but not yet paid for, while accounts receivable can include invoices for goods or services provided but not yet paid for by customers.
Example: If a company purchases inventory on credit from a supplier, it will have an accounts payable balance. On the other hand, if a company sells goods to a customer on credit, it will have an accounts receivable balance.

Accepted Answer

What is the entry of sale (with GST) = 100+18(GST)

Accounts Receivable/debtors/Bank A/c Dr. 118

To Sales 100

To Output GST 18

Purchase A/c Dr 100

Input GST A/C Dr 18

To Accounts Payable/bank/Creditors A/c

Accepted Answer

Account payable:- when a company purchase any good our service on credit basis and its payment have been not cleared yet. As called account payable

Account receivable:- is the payment which the company will receive from its coustomer who have purchased it's good and services on credit

Accepted Answer

accounts payable represents money that your money owes to suppliers and account recieveable represents money owed to your business by customers

Top Genpact Financial Accountant interview questions & answers