AP-Gl reconcilation
Posted: Mon Jul 28, 2008 1:49 am
If invoice is raised for 100rs how a/cing entry is affected in trial balace and if we make payment for 100Rs how a/cing entry is affected in Trial balance?
Hi,
1) Accounting entry in AP while raising an Invoice for Rs.100.
Charge account Dr 100
To AP Liability 100
2) While Making payment
AP Liability account Dr 100
To Bank 100
3) The net effect will be
Charge account Dr 100
To Bank 100
4) When these entries are transfered to GL and posted it will reflect in the GL Trial balance against the respective accounts.