@JessT

Please Learn from this input.

The Bank stays as Bank. That is the Source/Destination of Funds being used. The Liability is the Why. That means you do Not change Bank. It's still Bank.

@neil2

Write the check. On that check is where you list this is Paying Out Liability. Instead of paying rent or office supplies, it is Paying out liability you already have accrued, the same as if that is a Loan Payment or paying down the Credit Card.

If you didn't accrue the liability, then you are paying out Expense as usual.