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Difference between accrual and accounts payable

A/c entries 332 views 2 replies

What is the difference between accrual and accounts payable? How can one distinguish these two?

Replies (2)

  Respected  Madam 

  Accrual   Accounting  means   recording  of transactions  of  a particular  Business  entity  , weather  Revenue  or  Expense  , received  , paid  in Cash  or  not  in a  particular  accounting  period  . 

   Accounts  payable is  liability  to  pay  expense   to  Trade  creditors  . Carried  forward  to next  accounting  period   not  if   paid  in the particular  accounting  period .   

 

Accrual Accounting

Both types of transactions recorded in Account Books i.e. cash or credit transactions

Accounts Payable

is current liability, amount payable to creditors for items etc. purchased by you from creditors


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