Accrued Expenses
Accrued Expenses is a term used in accounting where the expense is recorded in the books before it is paid for.
Expenses are periodic and are listed on the balance sheet as Accrued Expenses as current liability in balance sheet such as Rent, wages, bank loan interest where payments are made monthly
Interest Expense…Dr
To Interest Payable…Cr
Accounts Payables
Accounts Payables is the amount that the company has to pay in the short term to the creditors.
These expenses are part of everyday process and are listed as Accounts Payables in current liabilities.
Accounts payables are due to the creditors.
Purchase… Dr
To Accounts Payables..Cr
