Because these exps are paid/payable to persons. person includes Sole Proprietor, Partnership Firms, HUF, Co; etc.Personal accounts always appear in B/S until it is transfered to expenditure by debiting to P&L A/C.

Accounts payable refer to the current liability of a business or an organization. That is the unsettled payments in a business or an organization refers to Accounts payable.

Bills payable refers to bills settled. In other words the paid and accepted recorded bills in a business or an organization refers to bills payable

The difference between Debentures and Preferential Shares is as follows:

1) Person holding debentures has owed money to a company, while Preferential Shareholder could be considered as a partial owner of the company.

2) A Preference shareholder earns dividends if the company is making profits, however a debenture holder needs to be paid irrespective of making profits or losses.

3) A debenture holder would be paid the capital invested at the end of a stipulated term. A preference shareholder is not promised return of capital invested; instead he earns dividends till the time the company exists and is profitable.

4) A debenture holder earns interest on the capital invested till the capital is not returned, while a preference shareholder is paid dividends till the time the company exists.

It is the allowance paid to an employee who is working on a special assignment.  This amount is completely exclusive of his Compensation plan.  These are given in scenerio's like, when the employee went for On Job Training or an Employee sent for short term Deputation to survive his expenses in the new location.

The Debit balance recovery is usually made by raising a credit memo for the regular vendors. However if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from him.

When payment is made to the wrong vendor or payment made in excess, in that case overpayment has gone to the vendor, So for us it is vendor debit balance.

For debit balance recovery, we can either follow-up with the vendor to send us the excess amount / refund back, or we can adjust that extra amount in future invoices submitted by that vendor

In Case no future transactions, we have to follow-up with the vendor, falling whicch we have to write off this amount.

Invoice holds are 2 types
1)Sytem Hold               2) User Defined Holds.

Sytem Holds: Sytem holds the invoice if the Invoice Amt total is not equal to Invoice Distribution Amt. To release the hold correct the amount and again validate the invoice.

User Defined Holds: These is defined by user. If we do want to make payments to the validated invoice. Go to particular invoice and apply hold going to Holds tab.

The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero.During clearing, the system enters a clearing document number and the clearing date in these items. In this way, invoices in a vendor account are indicated as paid, and items in a bank clearing account are indicated as cleared.

You generally use the payment program to clear invoices. Manual clearing of open items is therefore not usually necessary. However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.

A non-po is an invoice which does not have po(purchase order).However, these invoices requires approval for authorized person/persons to process for payment.