Tag: elements of accounts

Questions Related to elements of accounts

Bills Receivable book is to keep record of ___________.

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 Received From Customers

  2. Bills Received From Supplier

  3. Credit Purchases

  4. Cash Sales

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Correct Option: A
Explanation:

There are various subsidiary books. Bills receivable book is also a subsidiary book which is used to records all bills received from customers.

The total of Bill receivable book will always show ________________.

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. Debit balance

  2. Credit Balance

  3. Nil Balance

  4. None

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Correct Option: A

The bank rate means ____________________________________.

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. Rate of Interest charged by commercial banks from borrowers

  2. Rate of Interest at which commercial banks discounted bills of their borrowers

  3. Rate of interest allowed by commercial banks on their deposits

  4. Rate at which RBI purchases or re-discounts bills of exchange of commercial banks

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Correct Option: D

On drawing a bill of exchange the drawer debit __________.

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 a/c

  2. bills A/c

  3. bills payable A/c

  4. endorsee A/c

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Correct Option: A

____________ is designed as a summary of all the bills accept by the firm for which payment has to be made on specified dates of maturity in future.

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: B

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.