Accounts Reconciliation Blog

A couple of months ago I finally paid off a loan. It was such a relief to write off a debt. In business, there are also debts to be paid. These debts are payments due to suppliers to landlords and other expenses. These are called accounts payable.
If you’re an accountant, you should aim to write off accounts payable in addition to doing the balance sheet and the income statement.

You will write off an accounts payable only after it has been paid. When the supplier for instance is paid for the month you should update your ledger accordingly. You should put accounts payable under the debit side and place cash in the credit side. The same amount should appear opposite both entries. As long as both columns are properly updated you should have no problem balancing the sheets.