Journal Entry: Payment on Account
by Marvin
(Philippines)
Question:
What would the journal entries be if the problem is like this: "Made payments on account, 17,000" ?Solution:
Here is the journal entry for a payment on account:Debit: Creditors/Accounts Payable 17,000
Credit: Bank 17,000
Payment to creditors/payables


FYI creditors are also known as accounts payable or simply payables.
As this is a payment the entry would be recorded in the cash payments journal (CPJ).
Hope that helps.
For more info check out the full lesson on accounts payable journal entries (i.e. paying off creditors).
See the comments section below for more questions about payments on account.
Best,
Michael Celender
Founder of Accounting Basics for Students
Related Questions and Tutorials:
- Accounts Payable Journal Entries
- Accrued Expenses Journal Entry: Debit or Credit?
- What is an Outstanding Salary?
Return from Journal Entry: Payment on Account to Basic Accounting Questions
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