Accounts Payable

What is the difference between (1) accounts payable and bills payable and (2) accounts receivable and bills receivable

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kashiffakih

  • May 14th, 2009
 

Accouts payable is your liability its shown liability side in the balance sheet and party ac will be credited
Purchsed A/c
 To Party A/c

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anilrawatnokia

  • Sep 15th, 2010
 

1. Accounts payable are amounts due to vendors in the normal course of business, such as for rent and utilities, supplies, and the like. A note payable represents a loan which bears interest, usually secured by something like equipment. A good example of this would be when you buy a car and are making payments...you have a note payable to the bank, and the note has a stated rate of interest and fixed monthly payments.

2.  same applied for AR & BR

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subbop

  • Jul 27th, 2011
 

Account payable refers to the debts to be paid off within a given period of time to the creditors and whereas bills payable is the money a bank borrows, mainly on short term basis and owes to other banks.

Account receivable refers to the money owed to the customer on credit terms for supply of goods or services and is to be received and whereas bills receivable is documents received by issuing banks under DC.

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