Bills Payable

Similar to accounts payable, Bills Payable is used to describe a bank’s gratitude to other banks, principally a Federal Reserve Bank, that is backed by guarantee consisting of the bank’s promissory note and a pledge of government securities. In other words, bills payable is the money a bank borrows, mainly on a short-term basis, and owes to other banks.

Bills Payable Book

Bills Payable Book: Learning Objectives: Define and explain bills payable book. Prepare a bills payable book and post into ledger. Definition and Explanation: Bills payable book is used to record bill accepted by us. When a bill drawn by our creditor is accepted particulars