Question

What is the accounting entry for bills accepted by creditors and what does it mean!?

Answer 1

Answer: Bill's Payable a/c Dr

To Creditor's a/c

Explanation:Bills payable are basically you are accepting a bill from a creditor from whom you purchased something and for payment you accepted a bill with certain months of expiry after which you are bound to pay it. Here you (firm) is paying the creditor so, creditors are credited and bills payable debit as you are closing the account.

Hope you understood if not then you can ask me again for better explanation.

Thank you

Answer 2

Answer:

Journal Entry for Bills of Exchange

Drawer’s Books