Other payables and receivables: debts that are not trade
Trade receivables and payables are for buying and selling goods. A deposit, a staff loan or a van on credit go to other accounts.
Task 1Trade or other2 questions
- Trade receivables
- what customers owe for goods or services sold to them
- Other receivables
- any other money owed to the business, such as a deposit to be returned or a loan to a member of staff
- Trade payables
- what the business owes suppliers for the goods and services it trades with
- Other payables
- any other money the business owes, such as the price of a van bought on credit
Receivables of both kinds are assets. Payables of both kinds are liabilities.
Keeping them apart means Trade receivables shows only what customers owe, so it can be checked and chased.
Task 2Posting them2 questions
You post entries to T-accounts.
Task 3The list of balances2 questions
You work out a figure and find the mistake in a table.