331 Other Payable
Liabilities
Accrued
Synopsis
Account 331 is established to record the amount payable or accrued for Other Payables.
Debits |
Credits |
|
|
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:
Charitable contributions
Inventory service
Legal and auditing fees
Rent
Dividens