Finally, debit interest expense and credit cash to record the interest payment.
You and your partners, the ordinary shareholders, are the owners of the company, and, therefore, would only have access to the money if any remains after paying off all creditors.
You must dispose of current assets such as inventory or trade receivables such as outstanding amounts from customers.
The category of creditors includes trade-related or suppliers, banks and other financial institutions that provided your company with loans and overdrafts.
The accounting entry for paying off trade-related payables is a debit to the trade payable account and a credit to the cash account.
We offer a variety of petroleum products to serve the needs of both our residential and commercial accounts.
Our products include Home Heating Oil, Kerosene, Propane, Bio Fuel, ULSD Clear On Road Diesel, ULSD Dyed Off Road Diesel, Gasoline.