A bill accepted by a business and payable at a future date is entered in which book?
Correct answer: B. Bills payable book
- A. Bills receivable book
- B. Bills payable book
- C. Purchases day book
- D. Journal proper
Explanation
An accepted bill creates an obligation for the business to pay later, making it a bill payable. A bill receivable is one that the business expects to collect.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Double Entry and Books of Prime Entry
Double entry records every transaction with equal debit and credit entries, based on the accounting equation and the classification of assets, liabilities, capital, income and expenses. Books of prime entry include the sales, purchases, returns and cash books, journal, and source documents used before transactions are posted to ledger accounts.
Practise Double Entry and Books of Prime Entry
34 free Double Entry and Books of Prime Entry MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Double Entry and Books of Prime Entry questions
Which book of prime entry is used to record credit notes received from suppliers for goods returned?
A credit purchase of goods from Hamid is recorded in the purchases day book. Which account is credited when it is posted?
Which book of prime entry records credit purchases of assets such as furniture?
Which entry records goods withdrawn by the proprietor for personal use?
A customer returns goods that were previously sold on credit. Which account is debited when the return is recorded?
Which transaction is normally entered on the debit side of the cash book?