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متابعة

Can you debit account payable and credit retained earnings?

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تم إضافة السؤال من قبل Ahmed Saeed , Supply Chain and Purchasing Manager , Tuff Gear Ltd.
تاريخ النشر: 2014/01/09
Rehan Qureshi
من قبل Rehan Qureshi , Financial Consultant , Self Employeed

yes you can.

mukkur srinivasan varadhan
من قبل mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice

Account payable not paid long and claimed and paid normally for more than3 years and not disputed ,decision can be taken to write back duly substatiated .Then it goes to P and L account only. The balance of P and L account is transferred to Retained Earnings Account.Write back becomes the the revenue of the year in whichn such decision was taken. 

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