Accounts Payable - what is difference between account payable and bills payable

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what is difference between account payable and bills payable

Total Answers and Comments: 4

Last Update: September 22, 2008 Asked by: Rajeshwari

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Submitted by: Fasahat

Accounts payable: A debtor's accounts of money he owes; normally arise from the purchase of products or services.

& Bills payable: Bill means (An itemized statement of money owed for goods shipped or services rendered). The outstanding bills (like for instance utility bills etc) yet to be paid.

What I feel is that the nature of both the accounts in terms of their treatment would be the same; as; both are Current liabilites yet to paid, think about "payable" & "paid" feel the difference. Got it? :-)

Above answer was rated as good by the following members:
Sajeesh_78

May 05, 2007 15:15:12

SriramKrishna

Member Since: September 2006 Contribution: 63

RE: what is difference between account payable and bil...

Accounts payable refer to the current liability of a business or an organization. That is the unsettled payments in a business or an organization refers to Accounts payable. Bills payable refers to bills settled. In other words the paid and accepted recorded bills in a business or an organization refers to bills payable

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October 30, 2007 02:14:12

Mohamed Najeeb

RE: what is difference between account payable and bil...

One and same.

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April 12, 2008 16:34:55

Fasahat

Member Since: April 2008 Contribution: 1

RE: what is difference between account payable and bills payable

Accounts payable: A debtor's accounts of money he owes; normally arise from the purchase of products or services.

& Bills payable: Bill means (An itemized statement of money owed for goods shipped or services rendered). The outstanding bills (like for instance utility bills etc) yet to be paid.

What I feel is that the nature of both the accounts in terms of their treatment would be the same; as; both are Current liabilites yet to paid think about "payable" & "paid" feel the difference. Got it? :-)

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September 22, 2008 10:37:26

Prasoon Pankaj

Member Since: September 2008 Contribution: 1

RE: what is difference between account payable and bills payable

If the bill is to be paid directly to the customer it is bill payable and if the transaction is through bank then it is account payable.

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