What nominal code is Accounts Payable?

Accounting
1

I’ve been looking at accounting tutorials about recording manufactured inventory. The journal entries are like this:

Materials Imported DR
Accounts Payable CR then
Work in Progress DR
Materials Imported CR then
Finished Goods DR
Work in Progress CR

What I want to know is, what code in Chart of Accounts is the referred to Accounts Payable. Is it Cash? Is it Bank Current Account? This would really help me out. :smile:

2

2100 Creditors Control Account
If you book purchase invoice for Material Import then you dont need journal entry for material

3

Thank you :slight_smile: I was going to use the journal to record the manufacturing process.

4

i suggest use purchase invoice method, this will keep suppliers account balances which you can tog to payments

1 Like
5

Yes I understand that, but I use the purchased materials to make my stock. Therefore I’m using the journal to record that :sunny: