1. Explain Accounts Payable?
Any sum of money owing by a business to its suppliers is recorded as a liability on a company's balance sheet as accounts payable. Accounts payable is also known as bills payable, and the entire amount owed by a corporation is recorded as a liability in the balance sheet under the heading "sundry creditor".
2.Explain Accounts Receivable?
The amount owed to a company by its customers for goods or services purchased on credit is referred to as Accounts Receivable. In other terms, it's the amount owed to you by a customer for contractual duties. Ad debtors, trade debtors, bills receivable, and trade receivables are all terms for Accounts Receivable.
3.State the difference between Accounts Payable and Receivable?
The Accounts Payable ledger keeps a record of a company's short-term liabilities, such as obligations for things purchased from suppliers and money owed to creditors. Accounts Receivable refers to money owed to the company by customers and partners.