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Which item relating to bills payable is transferred to the total creditors account?

AThe opening balance of bills payable
BThe bills payable accepted in the year
CThe closing balance of bills payable
DThe cash paid to honour bills payable
Answer & Solution
Correct answer: B. The bills payable accepted in the year
1. The two accounts are linked by the act of accepting a bill, which converts an ordinary creditor into a bill payable. 2. So the figure that crosses from the bills payable account into the total creditors account is the bills accepted during the year. 3. It appears on the debit side of the total creditors account, because accepting a bill reduces the creditors balance. 4. The opening and closing balances of bills payable stay within the bills payable account itself. 5. Cash paid to honour bills payable also belongs to the bills payable account, not the creditors account. _Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 1 "Accounts from Incomplete Records", §1.8.1_
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