What is the meaning of notes payable? What are the accounting entry for it?

Notes payable is an instrument, It is written promise for a stated amount in the Notes for a future defined date.

The entry for Notes payable issued

Supplier/other party-------------Dr

          To Note Payable

When the maturity period is finished the entry is,

Note Payable------------Dr

        To Bank

In sample answer , Notes Payable means we issued checks but with date not same time we wrote the check , Then we record it on accural basis and once its date came up and found in the bank then we can cerdit the accural and debit the account for the operation belongs to it.

Written promises to pay stated sums of money at future dates. The note payable only takes into account the principal of the loan. It does not include any interest. it is a credit account.

Notes Payable means a written promises to pay a specified amount on a demand or at a certain time.

Accounting entry for notes payable:-

1) at the time of signing the note:

Cash Account.... Dr.  $1,000

Notes Payable.....Cr.                          $1000.

2) at the time of re-payment.

   Notes Payable....Dr. $1,000.

   Cash......Cr.                              $1,000.

If interst is applicable we have to  include interest also in accounting entry, so the entry will be:-

1) Interst Account(Expense).... Dr. $10.

     Interest Payable....Cr                                  $10.

At the time of Interst Payment entry will be:

2)  Interst Payable....Dr $10

      Cash.....Cr                               $10