Question

1. (b) Why do you maintain bill book separately? State the transactions recorded in Bill Receivable and
Bills Payable journals.
2. (a) What is joint venture ? Explain various methods of recording the joint venture transaction. Give
entries in each case. (10)
(b) Differentiate between : (10)
(i) General Commission and Del Creder Commission
(ii) Normal Loss and Abnormal Loss

Answer 1

Answer:

Bills Receivale Book and Bills Payable Book both record the transactions separately because of nature of transactions involved. ... Howerver, because Bills Receivable represents amount to be received by the business, it acts as an asset for the business, thus, usually carries a debit balance