What are Trade Payables?

Transcript

What are Trade Payables? Trade Payables Purchase of Goods Money or Payable Receiving of services It is the amount Payable against Purchase of goods or services taken in the ordinary course of business Types of Trade Payables Trade Payables Creditors Bill Payable Business has not Business has not made the payment made the payment And And does not accepts in writing give in a bill that they will writing when make a payment they will on specific date make and the payment specific time Amount and date Amount and date of payment is not Fixed of payment is Fixed Example My Company has Made Purchase of Rs 100000 from from Supplier When Supplier is a creditor Purchase Rs 100000 Supplier My Company Our company has not made Payment and Not Specify Time and Date In case of Bill Payable Purchase Rs 100000 Supplier Company Company has not Accepts Bill of Exchange made Payment but we give him Bill of Exchange mentioning Time and Date Bill of Exchange Stamp Amount: 100000 1 Month after the date,Pay to A sum of Rs 100000 for value Received Accepted Drawer My company Supplier Difference Between Sundry creditor And Bill Payable Sundry Creditor Bill Payable It is a person It means a or a business Bill of Exchange To whom we owes accepted by a money for Purchases person to Pay a made or services specific amount rendered on a specific date Example Example X Purchase goods X Purchase Goods from Y on 1 Jan from Y on 1 Jan X does not make X does not make payment payment to Y to Y at time of Purchase at time of purchase But X accepts A a Also X does not specify Bill of exchange when he will in writing mentioning make payment that he will pay Y and how much Rs 100000 on 10 jan So Y is a Creditor This Bill is Bill Payable (in books of X) in books of X