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What is bill payable?

Updated: 9/13/2023
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9y ago

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These represent bank drafts,telegraphic transfers,traveller chaques,mail transfer payable,pat slips,bankers chaques to the miscellaneous items which are issued by the bank but remained uncashed up to date of the preparation of the final accounts.

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9y ago

Bill payable is a term used by businesses for bills which must be paid like utilities or materials. Often, several individuals or an entire department is dedicated to this task.

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Related questions

What is difference between bill receivable and bill payable?

bill receivable is what is owed to a company; bill payable is what is paid


Is bill payable an asset?

no


What type of account is bills payable account?

ALL payable accounts are liabilities no matter what they are for. Whether it is a bill payable, mortgage payable, note payable, wages payable, etc, they are all listed as a liability. This is because a "payable" is something you (your company) owes but has not paid yet. For a bill such as Phone, once the obligation is met it is no longer a liability but an expense.


Difference between account payable and bill payable?

When goods purchased on credit it creates accounts payable and instead of waiting for actual payment time, creditors ask the company to issue a bill which they can use to fulfill their cash needs and hence in this way accounts payable changes into bill payables.


What is the meaning of bills payable and what are the difference between bills payble and accounts payable?

Bill payable means that bill is issued for the clearence in future date. Bill payable is issued for a temporary sattlement to accounts payable. Accounts payable are the creditors of company and which creditors required amount in emergency basis company issue them the note to be used until the actual payment is cleared so bill payable is the temporary document of evidance that amount is owed by company to creditors and creditors can use that note to fulfil their financial needs.


How are a schedule of accounts payable prepared?

An accounts payable is a "Liability" account. Payable being the "key" word, meaning something you have to "Pay" or "Owe". ALL payable accounts are liabilities no matter what they are for. Whether it is a bill payable, mortgage payable, note payable, wages payable, etc, they are all listed as a liability. Rahul


What is the difference between bills payable and notes payable?

Bill or notes payable both are same things with different names and can be used interchangably to refer to one same thing.


What are Bills payable and bills receivable entries?

what is bill receivable and bill payeble definition with example


What is a accounts payable ledger?

Just like normal people don't have just one bill, companies don't have one bill. For that reason, having just one "Account Payable" account for all their bill can be confusing, inefficient, and can lead to fraud. So, they establish what is called a "sub-ledger", in this case it's "accounts payable ledger". That account will have multiple accounts payable accounts and the end balance is shown in the general ledger as just "Accounts Payable". For Ex. there could be one for Insurance, office supplies, salary, and other accounts payable, etc.


Is decrease to accounts payable debit or credit?

Debits decrease the balance of the Accounts Payable account. Accounts Payable is presented in the Liability section of the Balance Sheet. If you purchase a printer for $200 and enter the bill into the accounting program, the program will debit the expense account you choose (e.g. Office Equipment) for $200 and credit Accounts Payable $200. Then, when you pay the bill, the accounting program will debit Accounts Payable $200 - thereby canceling out, you might say, the earlier credit. (And the accounting program will, of course, also credit the Checking Account by $200.) So when we enter bills into the accounting program, Accounts Payable is credited. And when we pay the bill, Accounts Payable is debited, its balance is decreased.


What is Inland Bill Purchase?

An inland bill; purchase is a bill of sale that is drawn up. It fundamentally says that the bill is both drawn and payable nationally, not internationally.


Bill recievable and bill payable journal entries?

Entry of bill recievable is: Bill Recievable A/c dr. To debtor