Skip to content

CMA Intermediate · Financial Accounting · Bills of Exchange

In the books of a drawer, which book is used to record the particulars of all bills of exchange accepted by customers and received by the drawer?

The Bills Receivable Book is used. It is the subsidiary book in which a business records the particulars of accepted bills it receives from customers. The Bills Payable Book is for bills the business itself accepts, and the cash book records only cash or bank movements.

  1. ABills Payable Book
  2. BBills Receivable BookCorrect
  3. CCash Book
  4. DPurchases Day Book

Explanation

A drawer who receives accepted bills from customers records them in the Bills Receivable Book, which is a subsidiary book. The Bills Payable Book is used for bills the business has accepted, so it is wrong here. The Cash Book records cash or bank movements, not the receipt of a bill.

Did you get it right without looking?

One question tells you little. A timed set on Bills of Exchange shows your real accuracy, how long you take and where you lose marks.

Practise Bills of ExchangeFree diagnostic mock

More Bills of Exchange questions