What is recorded in the bills receivable book?
Correct answer: B. Bills accepted by customers in favour of the business
- A. Bills accepted by the business in favour of suppliers
- B. Bills accepted by customers in favour of the business
- C. Cash purchases made from local suppliers
- D. Cheques issued to settle trade creditors
Explanation
The bills receivable book records bills received from debtors and accepted in favour of the business. Bills accepted by the business for suppliers are bills payable and belong to the corresponding bills payable records.
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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.
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