Is accounts payable a debit or credit?

Question

Is accounts payable a debit or credit in normal accounting entries? I’d like to understand why accounts payable normally carries a particular balance and how payments affect the account.

Richer · Answer

Accounts payable generally have a credit balance since they contain the amounts owed by the business to its suppliers. They are credited on an increase and debited on a decrease as the business settles its accounts.

Answers