Paying suppliers
Objective: Record supplier payments and correct duplicates.
Recommended first: Recording supplier bills
A payment debits Accounts Payable and credits Cash. Before paying, check the bill is approved, not already paid, and matches what was received. Duplicate payments push a supplier's balance into a debit; a refund restores it.
Paying from approved bills rather than supplier statements avoids paying items twice or paying for disputed goods. Recording the check or transfer number makes the bank reconciliation easier. If a duplicate payment happens, the supplier balance turns debit; request a refund or apply it against the next bill, and record it accordingly.
Check your work
- Is the payment matched to an approved, unpaid bill?
- Is the payment reference recorded?
- Are any debit supplier balances investigated?
A three-way match — comparing the purchase order, the delivery record, and the bill — is a common control before payment. It confirms the business ordered the goods, received them, and was billed the agreed price. Small businesses may use a simpler version, but the idea is the same.
Pay $500 of a $2,000 bill.
| Account | Debit | Credit |
|---|---|---|
| Accounts Payable | $500.00 | |
| Cash | $500.00 |
Common mistakes
✗ Paying from a statement rather than approved bills.
✓ Statements can include items already paid.
Guided practice
Use hints freely here.
Item 1 of 1
Partial payment of a bill
On Mar 20, 2026, Corner Bean Café pays $600.00 of a $2,300.00 supplier bill recorded earlier.
Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 4
Supplier refunds a duplicate payment
BrightNest Cleaning Co. accidentally paid a $220.00 supplier bill twice (both payments debited Accounts Payable). On Mar 23, 2026, the supplier refunds the duplicate payment by bank transfer.
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References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.