Define payable. payable synonyms, payable pronunciation, payable translation, English dictionary definition of payable. adj. 1. Requiring payment on a certain date; due. 2. Requiring payment to a particular person or entity. 3. Capable of producing profit: a payable business… As an example of a loan payable, a business obtains a loan of $100,000 from a third party lender and records it with a debit to the cash account and a credit to the loan payable account. After one month, the business pays back $10,000 of the loan payable, plus interest, leaving $90,000 in the loan payable account. Related Courses. The Balance Sheet
Accounts payable are a current liability for a company and are expected to be paid within a short amount of time, often 10, 30, or 90 days. 2. A unit within a company's accounting department that deals with accounts payable, managing credit lines, purchase orders, and audit reports.
Loans payable meaning. loan payment: Amount of periodic payments to satisfy mortgage loans, car loans and other loans. A note payable is a written promissory note.Under this agreement, a borrower obtains a specific amount of money from a lender and promises to pay it back with interest over a predetermined time period. The interest rate may be fixed over the life of the note, or vary in conjunction with the interest rate charged by the lender to its best customers (known as the prime rate). Payable definition: If an amount of money is payable , it has to be paid or it can be paid. | Meaning, pronunciation, translations and examples
The Lender's Loss Payable Clause is used to cover a creditor whose interest in insured property is stated in a written document such as a mortgage, warehouse receipt, or bill of lading. For example, suppose that Fred (in the previous example) decides to pay Lasers-R-Us the full purchase price of the laser machine upfront. Examples of Accounts Payable and Accounts Receivable. Let's assume that Company A sells merchandise to Company B on credit (with payment due 30 days later). Company A will record the amount of the sale with a credit to Sales and a debit to Accounts Receivable. Company B will record the purchase (perhaps as inventory) with a credit to Accounts. The note payable is a written promissory note in which the maker of the note makes an unconditional promise to pay a certain amount of money after a certain predetermined period of time or on demand. The purpose of issuing a note payable is to obtain loan form a lender (i.e., banks or other financial institution) or buy something on credit.
Loans receivable is an accounting term that refers to the manner in which lenders classify the outstanding money owed them by debtors. The lender could be anyone form banks, financial institutions and private investors to individuals. Loans receivables are entered in the accounting ledgers of the lenders as money that is yet to be repaid by the borrowers. Accounts Payable Credit or Debit. Accounts payable is the amount owed by the company to its customer for purchasing goods or services, so it the liability of the company payable to the other party which is credited while passing the entry in the books of accounts of the company. long-term loan: A type of loan that has an extended time period for repayment usually lasting between three and 30 years. Car loans and home mortgages are examples of long-term loans.
Loans with higher interest rates have higher monthly payments—or take longer to pay off—than loans with lower interest rates. For example, if a person borrows $5,000 on an installment or term. The company will record this loan in its general ledger account, Notes Payable. In addition to the formal promise, some loans require collateral to reduce the bank's risk. Definition of Account Payable. The account Accounts Payable is normally a current liability used to record purchases on credit from a company's suppliers. Journal entry for loan payable. Loans taken from bank or other financial institutions can be maintained in output books as. Secured Loan; Unsecured Loan; Secured Loan. Secured loans are loans backed with something of value that you own. This is called collateral.
Accounts Payable is a short-term debt payment which needs to be paid to avoid default. Description: Accounts Payable is a liability due to a particular creditor when it order goods or services without paying in cash up front, which means that you bought goods on credit. Accounts Payable as a term is not limited to companies. payable: Sum of money that ought to be paid, as agreed or required. See also payables. Accounts payable (AP) is an important figure in a company's balance sheet. If AP increases over a prior period, that means the company is buying more goods or services on credit, rather than.
Describing a debt that must be repaid upon the request of the lender.For example, if Joe lends Bob $100 payable on demand, there is no set payment date, but Bob must pay whenever Joe asks. Some loans become payable on demand if the borrower violates the terms of the lending agreement. See also: Call the loan. Loans and advances are general descriptions of debt obligations companies owe and must show on their balance sheet as part of total liabilities. Formal contracted loans are typically designed as "notes payable" on a balance sheet, whereas advances or purchases on credit are recorded as accounts payable. A loan receivable, meaning money someone borrowed from you and must repay, is the opposite of a loan payable. That's money you borrowed and must repay to someone else. Loans receivable are assets; loans payable are liabilities. The part due in the next 12 months is a current liability or asset.
Evaluating the Notes Payable . To get a sense of whether a company is wisely borrowing money (such as the department store executive) or recklessly creating an untenable debt burden, look at the notes payable amount on the balance sheet. Definition of Loans payable. Loans payable. Amounts that have been loaned to the company and that it still owes. Related Terms: Accounts payable. Money owed to suppliers. ACCOUNTS PAYABLE. Amounts a company owes to creditors. Accounts payable. Amounts owed by the company for goods and services that have been received, but have not yet been paid. From Longman Dictionary of Contemporary English Related topics: Loans payable pay‧a‧ble / ˈpeɪəb ə l / adjective [not before noun] 1 BFL a bill, debt etc that is payable must be paid payable on Tax is payable on the interest. payable by a fee of £49, payable by the tenant payable to State pensions become payable to women at age 60.
payable definition: 1. that should be paid: 2. If a cheque is payable to a particular person or organization, his…. Learn more.