What is an Accounts Payable Subsidiary Ledger An accounting ledger of a business that shows its expenses, transaction history, and amounts owed to each supplier. The ledger extends credit from a ...

Accounts Payable Example Let's say that a business purchases $4,000 worth of computer peripheral in credit. The business adopts double-entry bookkeeping with an accrual accounting method.

The accounts payable account is a high-volume account for some businesses. When you want to reduce the transaction volume and level of detail in your general ledger, a subsidiary ledger for your ...

Additionally, I reconcile the accounts payable ledger with vendor statements and perform periodic aging analysis to identify discrepancies and address them promptly. 14 Mohamed Moustafa Saber, MBA ...

This type of understatement is associated with periodic reports. If all other invoice information is correct, your accounts payable ledger balance is not understated.

Also, if your suppliersoffer discounts for payment within 10 days of invoice, a goodautomated accounts payable system will alert you when to pay tomaximize the discounts earned.

So, at year-end the following year, the accounts payable will double to $200,000, and the cash on hand will increase by $100,000, equal to the amount it saved with the free month from its suppliers.