The journal entry to record a particular business transaction includes a credit to a liability account. This transaction is most likely also to include:

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A credit to a liability account indicates that the business has incurred a liability, such as a loan or an account payable. The purchase of an asset on account is also a liability because the business has received the asset but has not yet paid for it, therefore a credit to a liability account is necessary. Issuance of new share capital, cash payment, and credit to accounts receivable are not necessarily related to a liability account.

The Journal Entry to Record a Particular Business Transaction Includes