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Bills receivable and Bills Payable Book Video Lecture | Accountancy Class 11 - Commerce

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FAQs on Bills receivable and Bills Payable Book Video Lecture - Accountancy Class 11 - Commerce

1. What is a bills receivable book?
Ans. A bills receivable book is a record or register maintained by a business to keep track of all the bills that are to be received from its customers. It includes details such as the date of the bill, the name of the customer, the amount due, and the due date.
2. What is a bills payable book?
Ans. A bills payable book is a register or record maintained by a business to keep track of all the bills that it needs to pay to its creditors. It includes details such as the date of the bill, the name of the creditor, the amount due, and the due date.
3. How are bills receivable and bills payable different?
Ans. Bills receivable and bills payable are different in terms of their purpose and the parties involved. Bills receivable represent the amount of money that a business is entitled to receive from its customers, whereas bills payable represent the amount of money that a business owes to its creditors. In simple terms, bills receivable are what the business is expecting to receive, whereas bills payable are what the business needs to pay.
4. Why is it important to maintain bills receivable and bills payable books?
Ans. It is important to maintain bills receivable and bills payable books as they help businesses keep track of their financial obligations. These books provide a systematic record of bills that are to be received from customers or paid to creditors. By maintaining these books, businesses can ensure timely payment collection and avoid any payment delays or disputes with customers or creditors.
5. How can bills receivable and bills payable books be helpful for financial analysis?
Ans. Bills receivable and bills payable books can be helpful for financial analysis as they provide insights into a business's cash inflows and outflows. By analyzing the outstanding bills receivable, businesses can assess their liquidity and cash flow position. Similarly, analyzing the bills payable can help businesses plan their cash outflows and manage their working capital effectively. Additionally, these books can also assist in identifying any patterns or trends in payment behavior, which can be useful for credit management and decision-making.
82 videos|105 docs|42 tests

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