What is the journal entry for payment made to creditor?

The journal entry for payment made to a creditor typically involves debiting the Accounts Payable account to reduce the liability and crediting the cash account to reflect the outflow of cash. For example, if a company pays $1,000 to a creditor, the entry would be:

Debit Accounts Payable $1,000
Credit Cash $1,000

This entry decreases both the company's liabilities and its cash balance.