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what is bill payable?
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Answer / raju
Bills payable which is due from us to other party payable
for his services.. For ex; Telephone bills payable within
due date is known as BP.
| Is This Answer Correct ? | 7 Yes | 1 No |
Answer / ismail
recording of bills raised by the suppliers is called bills
payable/accounts payable
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / yogendra.c
It is a guarantee that the business gives to the vendors or suppliers for the payment on a specified date to a specified person or order.
In other way you can take it as authorization letter for a creditor.
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From the following Trial Balance of Seema Garments as on 31st Dec., 2007, prepare Trading Profit and Loss Account and Balance Sheet: Dr. Rs. Cr. Rs. Opening Stock 15000 Purchases and Sales 109000 180000 Manufacturing Wages 8000 Fuel, Power and Lighting 12000 Salaries 11000 Income Tax 5500 Loan to Mr. X at 10% pa. 5000 Interest on Mr. X’s Loan 300 Apprentice Premium 4500 Rent 4000 Rent Owing 600 Furniture (includes furniture of Rs.1000 purchased on 1st July, 2007) 5000 B/R and B/P 6000 1600 Plant 72000 Debtors and Creditors 28000 13000 Capital 100000 Cash 19500 300000 300000 Informations: 1. Closing Stock was valued at Rs. 30,000. 2. Goodsworth Rs. 5000 was sold on 28th December, but no entry was passed to this effect. 3. Goods costing Rs. 7000 was purchased and included into Stock but no entry was passed to record the purchases. 4. Create a provision of 2% for discount on debtors. 5. Apprentice premium received on 1st January, 2007 was for 3 years. 6. Depreciate the furniture by 10% p.a. 7. Salaries for the month of December, 2007 are still outstanding.
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