alleryBills payable account in books of acceptor on acceptance is:
ADebited to acceptor
BCredited to acceptor
CDebited as asset
DCredited as liability
Answer & Solution
Correct answer: D. Credited as liability
1. Acceptance creates a liability for the drawee.
2. Entry in drawee's books: Drawer A/c Dr; To Bills Payable A/c.
3. Bills Payable is a liability account, hence credited.
_Source: ICAI BoS Foundation Paper 1, Ch 6 "Bills of Exchange", §4 acceptor entries_
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