Which account must be prepared to find the amount of bills receivable received during the year?
AThe total creditors account
BThe bills receivable account
CThe total debtors account
DThe bills payable account
Answer & Solution
Correct answer: B. The bills receivable account
1. Each control account yields one particular missing figure.
2. The bills receivable account carries the opening balance, the bills received from debtors, the bills honoured, the bills dishonoured and the closing balance.
3. Bills received during the year is the balancing figure of that account.
4. The same figure then appears on the credit side of the total debtors account, since receiving a bill reduces the debtors balance.
5. Bills accepted, by contrast, comes from the bills payable account and feeds the total 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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