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Forensic Accounting

Trade Payable Vs Non Trade Payable


I am a investment property. I am renting out the office building in order to generate business income. I have a renovation cost to upgrade/improve my building. The claim from the contractor should it be classified as trade payable or other payable?

asked 6 days ago in IAS 1 - Presentation of Financial Statements by Lee

1 Answer

0 votes
Trade payable is another term for accounts payable, an amount owed to a supplier for goods or services where the amount due is billed by the supplier on terms, rather than where the supplier is paid immediately. It’s a short term liability entered into your accounting system as accounts payable.

A utility payment often is a trade payable—it is a service your company consumes in the course of its business, provided and billed on terms rather than cash at purchase. So a trade payable does not necessarily have to be materials or inventory. It is accounts payable.

Other types of payables, e.g., payroll or dividends, are not recorded as AP but in other accounts for identification. These are typically entered into an accounting system by journal entry.
answered 5 days ago by veshmalahotra Level 3 Member (6,980 points)



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