Answer : Accounting payable is a file or sub-ledger that owes money to an individual or organization supplier , which has not yet been paid. When an invoice is received , it is added to the file and when the money is withdrawn, it is removed from the file. Accounts payable is often called just payables . Accounts payable is found under current liabilities heading on the balance sheet . Accounts payable in case of home , bills of electric company , telephone company , cable television or satellite dis service , newspaper etc. In this case the landlord or tenant remembers these bills and pays them on a monthly basis. But in the case of a large business organization, the accountant or bookkeeper of the organization uses the accounting software to receive the invoice and includes it under the liability account and removes it from the list when the money is paid. Large organizations use specialized account payable automation solutions (commonly called ePayables ) to automate the paper and manual invoicing process.