Tag: ledger and posting

Questions Related to ledger and posting

The entry related to honouring the bill is recorded in ____________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. bill receivable book

  2. bill payable book

  3. cash book

  4. none

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Correct Option: C

Bill receivable book only records transactions relating to _________________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. drawing of bills

  2. acceptance of bills

  3. both

  4. none

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Correct Option: A

Bill payable book only records transactions relating to ____________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. drawing of bills

  2. accepting of bills

  3. both

  4. none

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Correct Option: B

Consider the following statement, while preparing annual financial statements, the balance of bills receivable account can be treated as.
I. An accrued income
II. An item of assets
III. A "personal account" balance
Of these statement.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. II and III are correct

  2. I and III are correct

  3. I and II are correct

  4. None of these

Show answer
Correct Option: A
Explanation:


  • Accounts receivable represents revenue that has been both earned and billed but not yet received.
  • Accounts receivable is recorded as an asset on the balance sheet.
  • These B/R and B/P are not assets because they are not yet acquired as like Plant, building etc. 
  • They are yet to be encashed. Asset means which has been acquired and has some value. Hence, Bills Receivable and Bills Payable are Representative Personal A/cs.


A person who draws a bill of exchange is called as _______.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Drawer

  2. Drawee

  3. Purchaser

  4. Seller

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Correct Option: A
Explanation:

The Seller Drafts the Bill of exchange, he is the Maker of the Bill and also called Drawer.

A person on whom the bills of exchange is drawn is called as ______.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Drawer

  2. Drawee

  3. Payee

  4. Purchaser

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Correct Option: B
Explanation:

After credit purchases the Buyer has the obligation for Repayment of his debts towards seller. When a bill is drawn by the seller for a guaranteed payment he indicates the liability of the buyer to pay the bill. Hence, the buyer becomes Drawee when bill is drawn in his name.

A firm which keeps its books of accounts on single entry system has opening balance and closing balance of Bills Receivable as Rs. 9,000 and Rs. 11,000 respectively. Bills collected during the financial period amount to Rs. 20,000. Bills receivable received during the financial period amount to.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Rs. 22,000

  2. Rs. 18,000

  3. Rs. 12,000

  4. Rs. 11,000

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Correct Option: A

While preparing the Annual Financial Statement, the balance of Bills Receivable Account can be treated as a(n) 
1. Accrued Income
2. Item of Asset
3. Personal Account Balance
of these statements

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. 2 and 3 are correct

  2. 1 and 3 are correct

  3. 1 and 2 are correct

  4. None is correct

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Correct Option: A

When a bill is discharged, the acceptor debits ________________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Cash Account.

  2. Creditor's Account.

  3. Debtor's Account.

  4. Bills Payable Account.

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Correct Option: D

Which of the following is a correct statement ?

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bills Receivable Account is a Real Account.

  2. In order to renew a bill, the original bill need not be cancelled.

  3. At the time of endorsement of a bill, the drawee debts Bills Payable Account.

  4. When noting charges are paid by the bank at the time of dishonour of the bill, the drawee Credits Bank Account.

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Correct Option: A