Adjust/Offset a Supplier against another Supplier

1

I had to make a payment to Supplier A (will be accrued in Labour expense) in cash (1000). I wasn’t in the city so asked Supplier B to pay Supplier A.

I have an account with Supplier B (accrues in Fuel expense) which they send me weekly of what I owe them. I will pay the 1000 to Supplier B via a bank payment (but it is quite possible that the actual paid amount is more since I owe them more than 1000).

What is the best way to record this?

2

You can make journal entry

Debit: accounts payable- supplier A

Credit: accounts payable-supplier B