Under a double-entry accounting system, show how the entry for each transaction listed is entered in the ledger by choosing debit or credit to indicate the increase or decrease in the effected account.
-A decrease in Accounts payable.
A) Debit
B) Credit

Question

Quizplus · Accepted Answer

A decrease in Accounts Payable is recorded as a debit because Accounts Payable is a liability account, and liabilities decrease on the debit side.

Under a Double-Entry Accounting System, Show How the Entry for Each