331 Other Payable

Liabilities

Accrued

Synopsis

Account 331 is established to record the amount payable or accrued for Other Payables.

Debits

Credits

  1. Payments made

  2. Dividends paid which were previously declared

 

  1. Provision for other accrued expenses payable

  2. Dividends declared and payable

Example 1

Record the monthly accrual of $5,000 for the Public accountant’s fees.

Journal: Standard Entries Journal

Entry:

 

Debit

Credit

Account 072-09

Legal & Auditing Expense – General & Administrative

$5,000

 

Account 331

Other Payable

 

$5,000

Example 2

Record the accrual of $500,000 for dividends declared.

Journal: General Journal

Entry:

 

Debit

Credit

Account 375

Dividends

$500,000

 

Account 331

Other Payables

 

$500,000

Example 3

Record the payment of $500,000 for the dividend payable above.

Journal: Cash Disbursements

Entry:

 

Debit

Credit

Account 331

Other Payables

$500,000

 

Account 202

Cash in Bank

 

$500,000

Comments

A credit balance represents other payables and accrued expenses for items such as:

  1. Charitable contributions

  2. Inventory service

  3. Legal and auditing fees

  4. Rent

  5. Dividens