Accounts Payable Preparation

Accounts Payable Voucher  Preparation

This is how the company accountant prepared the accounts payable voucher . Here the following step below

1. First check the billing statement or supplier invoice.

                    Example   : Electricity Bill to our company

                          : Water Bill

                          : Purchase of company on accounts

           

2. Second select the appropriate account on the company chart of account for transaction you want to process.

Company Chart of Accounts

Asset

Cash in Bank 

Accounts Receivable
Prepaid Expense

Liabilities
Accounts Payable 

Notes Payable

Expense

Electricity Expense

Depreciation Expense
Telephone Expense


3.Now, we make an entry for the transaction we want to process.
   let say. the transaction we wish to process is the electricity bill

Entry : Accounts Payable Voucher

"To record electricity bill for the month of December 2011"

                                                  Debit               Credit
Electricity Expense                      xxx
Accounts Payable                                               xxxx



At the time of  electricity due, we process again the payment, and that is Check Voucher.


4. We make the Check Voucher and to close the accounts payable.

Entry: Check Voucher

"To record payment of electricity bill for the month of December 2011"

                                                 Debit               Credit
Accounts Payable                      xxx
Cash in Bank                                                      xxx


5. After this, you now pass to the accounting head for noted and approved.


**The high lighted by color red is the accounts that involve in preparing accounts payable and check voucher which shown also in our company chart of accounts.