M1 Accounts Payable
Accounts payable represent amounts owing by the entity to outside parties, such as suppliers, also known as “trade creditors”.
Recommended supporting documents: Creditor invoices, creditors’ schedule.
Reconcile accounts payable
Two tables are available on the workpapers, one for items which include GST and one for items which do not include GST. Ensure you record entries in the appropriate table.
- Reverse out prior year journals.
- Enter current balance of accounts payable as per client’s general ledger.
- Enter transactions or balance as per clients accounts payable ledger.
- Enter accruals into the workpaper e.g. accountancy fees.
- Description – Enter the details of the transaction/ entry.
- Ref – Enter the reference number.
- Code – Enter the account code of corresponding account.
- QTY – The number of items the adjustment relates to e.g. 2 cows.
- Gross – The total amount of the adjustment.
