When creating a bill in QBO, what liability account is increased?

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Expert Solution

Solution:

On the off chance that your Bank expanded, the "other record" is the Credit. An a good representative for a Liability account INCREASES what you owe. For instance, I apply for a line of credit for Cash to Bank = Store to Banking (charge)

Advance equalization expands (credit)

I apply for a new line of credit for Car = Debit (increment) new Fixed Asset

I have a Car Loan = Credit (balance is higher)

At that point, pay down the advance essential:

Check = credit Bank $100 (diminishes my parity)

Credit = charge (advance parity goes somewhere near $100)

Utilizing QB implies you DON'T have to consider Debits and Credits and utilizing JE for Banking isn't the correct instrument.

On the off chance that you paid out assets, use Banking Menu > Write Check.

Precedent: Prepay a provider = Write Check, presenting on an Other Asset account. Bank goes down (credit) and Other Asset goes up (like an Escrow account, they have my cash).

Also, paying a "payable" frequently implies I effectively utilized Enter Bill (AP) and need to utilize Pay Bills. JE can't clear AP.

ekkarill92 answered 1 year ago

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