Question

closing balance of bills receivable can be shown on the credit side of ___.
1)Total Creditors A/c.
2)Total Debtors A/c.
3)Bills receivable A/c.
4)Bills payable A/c​

Answer 1

Answer:

answer Bills receivable A/c.

Answer 2

Answer:

There are mainly three types of account: Real, Personal and Nominal accounts. Personal accounts are classified into three subcategories: Natural, Artificial and Representative. Bills Receivable and Bills Payable are personal accounts. Both these accounts represent debtors and creditors of a particular entity. The rule of personal account is Debit the receiver, Credit the giver. Suppose when Bills Receivable is issued, its debited because that represents debtor from whom money is receivable. In a way the entity has given those debtors a benefit i.e. credit so as per the rule Bills Receivable A/c is debited. Hence, bills receivable is a personal a/c.

3 is correct