Accounts Payable - Difference between account payable and bills payable

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Accounts Payable | Question 96 of 114

Difference between account payable and bills payable

Total Answers and Comments: 3

Last Update: August 18, 2008 Asked by: yallaiah.kanike

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Submitted by: pankaj040

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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mortonmendez007

June 13, 2008 08:24:13

pankaj040

Member Since: June 2008 Contribution: 1

RE: Difference between account payable and bills payable

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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July 13, 2008 22:46:17

Nishchint_2006

Member Since: July 2008 Contribution: 2

RE: Difference between account payable and bills payable

accounts payable consist of debtors & bills receivable,where as bills receivable is part of accounts receivable,if you have doubt plz check in Ratio analysis full fledged knowledge books

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August 17, 2008 09:54:09

Gandhevi

Member Since: August 2008 Contribution: 4

RE: Difference between account payable and bills payable

Accounts Payables & Bills Payable looks one and the same but the only difference here is Bill Payables talks about making payment to Vendors whereas Accounts payable deals with internal adjustments to Cost Centre & General Ledger Accounts.

Eg: Salaries Paid.
Bill payable says making payment to Vendor.
Accounts Payable would have its General Ledger account and they would book this amount to the respective expense account.

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