Dictionary of Accounting Terms: not payable
not payable
written promise to pay money at a future date. The payment consists of principal and usually interest. For example, a $10,000 three-month 6% note will require a payment at maturity of $10,150 ($10,000 principal plus $150 interest). The interest of $150 equals $10,000 ¥ 6% ¥ 3/12. A note payable may be classified as either a current or a noncurrent liability, depending on whether the note is due within one year or less. A note payable may be issued either to make a purchase, to refinance an open account payable, or toborrow from the bank.
