Saturday, August 13, 2011

In accounting, when you pay on account, what does that mean?

...I am not sure what HST means...however, when you pay on account you are going to debit your accounts payable, which is a liability. When you originally got the accounts payable credited...you weren't paying any cash out but instead received something and wrote a liability. When you pay that account off normally your cash will go down and so will your liability.

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