Account Payable OverviewAccounts Payable StepsG/l Account Update

Step 1: Down Payment Make / Advance payment for goods supply to Vendor X (F-48)

29A Dr Vendor X A/c 100050 Cr (To) Bank A/c 1000(Text/ Narration: Being advance paid to vendor x to supply raw material) Step 2: Vendor Invoice Posting (F-43)

40 Dr Raw Material Stock A/c 500031 Cr (To) Vendor X A/c 5000(Being invoice received from vendor) Step 3: Down Payment Clearing against Invoice (F-54)

26 Dr Vendor X A/c 100039A Cr(To) Vendor X A/c 1000(Being down payment cleared against invoice) Step 4: Full Payment/ Partial Payment / Residual Payment (F-53)

Full PaymentPartial PaymentResidual Payment

25 Dr Vendor X A/c 500050 Cr Bank A/c 500025 Dr Vendor X 300050 Cr Bank a/c (2000)38 Cr Vendor X (1000)25 DR Vendor X 300050 Cr Bank (2000)36 Cr Vendor(1000)

Transaction CompletedBalance 2000 need to paidFor balance 2000 new invoice will be generated.

Financial General Ledger Account

Bank A/c (Asset Account, Balance Sheet A/c, FSV - G005, # Relevant to cash flows

By Vendor X A/c1000

By Vendor X A/c- 1000

To balance b/d5000By Bank A/c 5000

Total5000Total5000

By Balance carried forward5000

Raw material G/L (Asset Account, Balance Sheet A/c, FSV - G001)

To Vendor X5000By Balance B/d5000

Total5000Total5000

To Balance carried forward5000

Sundry Creditors (Liability, Balance Sheet A/c, Recon A/c type - Vendor A/c, FSV-G067)

To Vendor X0By Vendor X 0

Total0Total0

To Balance carried forward0By Balance carried forward0

(AP) Vendor X A/c (Liability, Balance Sheet A/c, Recon A/c type - Vendor A/c, FSV-G067)

To Bank A/c1000By Vendor A/c5000

To Down payment clearing-1000

To Bank A/c5000

Total5000Total5000

By Balance carried forward0By Balance carried forward0

Profit & Loss A/c

Balance Sheet

Liability AmountAssetAmount

Bank over draft5000Raw material5000

Total5000Total5000