Is Accounts Payable a debit or credit?

Accounts Payable has a credit balance and is a liability account. The double-entry system, where every transaction includes at least two accounts, one of which is debited and the other of which is credited, is the fundamental premise of accounting. A company’s Accounts Payable, which shows the sum due to creditors or suppliers, rises as it gets goods or services on credit. The Accounts Payable account receives a credit entry for this increment. The Accounts Payable balance falls when a corporation pays off debt, and a debit entry is issued as a result. In conclusion, Accounts Payable keeps track of the business’s unpaid liabilities by maintaining a credit balance.

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