BASIC ACCOUNTING : BANKING VIEW - PAYABLE - RECEIVABLE - RECONCILATION

DEBIT & CREDIT FOR BANKING

 Credit                   -        what  comes  in

 Debit                     -        what  goes  out

ACCOUNTS PAYABLE

Account  payable  is  the  obligation  that  business  suppose  payback  to  its  creditors   for buying  goods  and  services.  It’s   the  unpaid Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor. Accounts payable are liabilities Accounts payable will decrease a company's  cash.

ACCOUNTS RECEIVABLE

Money that others owe to the company. Accounts receivable are amounts a company has a right to collect because it sold  goods or services on credit to a customer. Accounts receivable are assets. Accounts receivable will increase a company's cash.

RECONCILIATION (ACCOUNTING)

In accounting, reconciliation refers to a process that two sets of  record agreement. Reconciliation is used  to ensure that  the money  leaving an account matches  the actual money spent, this is done by making sure the balances  match at the end of a particular accounting period.