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Bills of Exchange — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsBook Keeping & AccountancyBills of Exchange2 Marks
Question
Bills payable are a liability.
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Answer

This statement is True.
Bill is always drawn on the debtor by the creditor. The debtor i.e. drawee has to pay the money on a future date. For the drawee or acceptor of the bill, payment of the number of Bills payable is certain and therefore, for drawee, Bills payable is a liability.

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