Accounts Receivable vs Accounts Payable: One Invoice, Two Ledgers worksheet

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Completed reference
Event	Seller AR balance	Buyer AP balance	Cash transferred
Opening	0	0	0
Invoice	3000	3000	0
Credit	2700	2700	0
Partial payment	1700	1700	1000

Your case

Business / period / source records / assumptions / reviewer / decision / review date

Blank worksheet
Event	Seller AR balance	Buyer AP balance	Cash transferred
Opening	Enter here	Enter here	Enter here
Invoice	Enter here	Enter here	Enter here
Credit	Enter here	Enter here	Enter here
Partial payment	Enter here	Enter here	Enter here

Method and controls

Compare the direction, classification and supporting records

Ordinary trade-account comparison; the accounting framework still applies
Question	Accounts receivable	Accounts payable
Who owes whom?	Customer owes the business	Business owes supplier
Usual balance-sheet category	Asset	Liability
Main evidence	Sales invoice, credit, receipt	Supplier bill, credit, payment
Normal increase entry	Debit AR	Credit AP
Cash event when settled	Business receives cash	Business pays cash

Trade balances are often current, but classification depends on the operating cycle and terms. A debit or credit is an accounting direction, not a synonym for good or bad. Customer deposits and prepayments can require other accounts; do not force every balance into ordinary AR or AP.

Follow an invoice, credit and partial payment

In a fictional accrual-basis example with no tax, Harbor Supplies delivers $3,000 of materials to a customer on November 5, with payment due December 5. The customer receives and records the materials as inventory. On November 12, a valid $300 return is accepted. On November 25, the customer pays $1,000. The remaining open balance is $1,700.

Matched entries; seller inventory/COGS entries are outside this comparison
Event	Seller ledger	Buyer ledger
Invoice / delivery	Debit AR $3,000; credit revenue $3,000	Debit inventory $3,000; credit AP $3,000
Accepted return	Debit sales returns $300; credit AR $300	Debit AP $300; credit inventory $300
Partial payment	Debit cash $1,000; credit AR $1,000	Debit AP $1,000; credit cash $1,000
Open amount	$3,000 − $300 − $1,000 = $1,700	$3,000 − $300 − $1,000 = $1,700

The seller’s inventory cost and related cost-of-sales reversal are excluded from this narrowly matched ledger example because the acquisition cost was not given. A complete accounting record must include them where applicable. Sales tax, foreign currency, discounts, impairment and framework-specific recognition require additional treatment.